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To test whether people benefit from a college degree, 15 college graduates who had worked full...

To test whether people benefit from a college degree, 15 college graduates who had worked full time before they went to college were randomly selected and their pre- and post- college-degree incomes were obtained. The data collected are given in the following table. Note that X1 stands for one’s pre-college-degree income and X2 stands for post-college-degree income. Test the hypothesis that people benefit from college degrees. (Income is measured in 1000 dollars)

X1

X2

25

32

31

35

30

30

43

42

24

30

19

34

22

24

35

33

32

32

18

22

22

22

51

45

23

35

40

48

33

35

0 0
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Answer #1

The following table is obtained Difference Sample 1 - Sample 2 Sample 1 25 31 Sample 2 32 35 30 35 32 18 32 45 23 35 40 35 Average 29.867 33.267 St. Dev 9.456 7.583 5.514 15We conclude that there is a significant difference between the pre and post degree income of the students who worked before getting their degrees.

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