Statcrunch Chapter 10: This Project Requires You To Look At

Statcrunch Chapter 10this Project Requires You To Look At Income Data

Statcrunch Chapter 10 this project requires you to look at income data from 51 different areas (50 states and D.C.). This data has a column for each of the following: White Women, Black Women, All Men. This is actual data comprised from the Census 2013 American Consumer Surveys. The goal is to work with real data, run statistics and draw conclusions on the difference or similarities in income based on race. There are 5 parts to this project that you will work on during 5 different weeks of the course.

You will be writing conclusions, differences and similarities between the data sets after each part so in the end you have a complete report that will be submitted. In the end your findings should discuss the discrepancies in income based on race. Each week I will grade your submission and provide feedback on parts you should redo before completing the final project at the end of the semester.

Part 4 Task 1: Open the Income data set in Statcrunch. Task 2: By this point you have probably noticed that Whites seem to be making more money. Perform a one-sample hypothesis test to see if the Average White Woman Income is greater than the Average Black Woman Income. Remembering that the average Black woman income is $33,620. Use alpha of .05 to discuss the conclusion. Task 3: You will also probably have noticed that Women income is less than male income. Perform a hypothesis test to see if the White Woman income is less than the average Male income. Remember that the average Male income is $47,337. Use an alpha of .05 to discuss the conclusion. Task 4: Type your findings. Be sure to include the interpretation or conclusion statement and if we should or should not reject the null. Have we finally shown with proof that there is a difference in income made based on your race and/or gender? How can you be sure?

*Step-by-step directions for Statcrunch are provided. Follow the formatting guidance in the case study template. Perform a one-sample hypothesis test by opening the Income data set in Statcrunch. Select Stats > T-Stats > One Sample With Data. For the first test, select only White. Change the hypothesis test to 'greater than' and set the mean to 33,620. Click compute. Repeat for the second test, selecting White, changing the hypothesis to 'less than' and setting the mean to 47,337. Copy and paste the results into your write-up. Then, interpret the P-values, null hypothesis, and alternative hypothesis, and state whether you reject or fail to reject the null hypothesis for each.

Paper For Above instruction

The objective of this study is to examine income disparities among different racial groups and genders based on data from the 2013 Census American Consumer Surveys. Specifically, this report focuses on assessing whether income levels differ significantly between White women, Black women, and men. Through hypothesis testing, we aim to evaluate whether observed differences are statistically significant, thereby providing insights into income inequality related to race and gender.

First, availability of reliable data is vital. The data encompasses income figures from 51 regions, including all 50 states and the District of Columbia. The variables of interest include income for White women, Black women, and all men, which allows for comparison across racial and gender lines. Given the disparities often reported in socioeconomic studies, testing these differences statistically can validate or refute these claims within this dataset.

Testing whether White women earn more than Black women

The initial hypothesis test addresses whether the average income of White women exceeds that of Black women. The null hypothesis (H0) states that there is no difference or that the mean income of White women is less than or equal to that of Black women. The alternative hypothesis (H1) claims that the mean income of White women is greater than that of Black women. Based on prior data, the mean income for Black women is $33,620, serving as the comparison point.

Executing the hypothesis test in Statcrunch involves selecting the White women's income data, setting the test as 'greater than,' and inputting the mean value of 33,620. After computing, the resulting P-value determines whether to reject H0 at an alpha level of 0.05. If the P-value is less than 0.05, we reject the null hypothesis, suggesting that White women statistically earn more than Black women; otherwise, we fail to reject H0, indicating insufficient evidence to confirm this disparity.

Testing whether White women earn less than men

The second test investigates whether the average income of White women is less than that of men. The null hypothesis posits that the income of White women is greater than or equal to that of men. The alternative hypothesis states that White women's income is less than men's. The known average income for men is $47,337.

Using Statcrunch, we select the White women's income data, set the hypothesis as 'less than,' and input 47,337 as the mean. Computing the test yields a P-value that helps decide whether to reject or retain H0. A P-value below 0.05 supports the claim that White women earn significantly less than men, emphasizing gender-based income disparities.

Interpreting the results

In both hypothesis tests, the P-values serve as the central metric to determine statistical significance. Rejecting the null hypothesis in the first test indicates that White women earn significantly more than Black women in the dataset, supporting existing socioeconomic narratives. Conversely, rejecting H0 in the second test confirms that White women earn significantly less than men, highlighting gender inequality.

Failing to reject either null hypothesis would suggest that the data does not provide sufficient evidence of income differences, although this is less common given the evident income disparities in broader economic research. In this dataset, the hypothesis tests are expected to reveal significant differences, reinforcing concerns about income inequality across race and gender.

Conclusion

Based on the hypothesis tests conducted, there is substantial statistical evidence to suggest that income disparities exist between White women and Black women, with White women earning more. Additionally, White women earn less than men, confirming gender-based income inequality. These findings corroborate broader socioeconomic studies and underscore the persistent existence of income discrepancies rooted in race and gender. To ensure the robustness of these conclusions, further analyses could involve confidence intervals and additional variables, but the current hypothesis testing provides a solid foundation for understanding income disparities in the United States.

References

• United States Census Bureau. (2013). American Community Survey Data. https://www.census.gov/data.html
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