Problem

Salaries. A large state university is interested in comparing salaries of its graduates (B...

Salaries. A large state university is interested in comparing salaries of its graduates (BA or BS) in the following areas: business, education, engineering, and liberal arts. Five graduates in each major are randomly selected and their starting salaries recorded. These data are available in a file named SALMAJ9 on the CD. In the MINITAB file, the variable SALARY will be one column. The variable MAJOR is a second column coded as 1 = business, 2 = education, 3 = engineering, and 4 = liberal arts. The salary data are in four separate columns in the Excel spreadsheet.

a. The university wants to know if there is a difference in the population average salaries for the four majors. Use a 5% level of significance in making the decision. State any hypotheses to be tested, the decision rule, the test statistic, and your decision.


b. Find a 95% interval estimate for the difference between the business and engineering mean salaries.


c. Use the Tukey or Bonferroni method to compare all possible pairs of means with a family-wise confidence level of 90%. Use the family-wise comparisons to determine if there is a significant difference in the population mean salaries for

(1) business and education majors

(2) business and engineering majors

(3) education and liberal arts majors

If so which major has a higher mean salary in each comparison?

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Solutions For Problems in Chapter 9