Independent Sample T Test

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Step 1- defining the variables

IV- gender (nominal)

DV- monthly income (ratio scale)

Step2 – setting null and alt hypothesis

H0- there is no significant difference between the average monthly income of male and females

H1- there is significant difference between the average monthly income of male and females

Step 3- determining the appropriate statistical test

Since we’re comparing on the basis of two mean values

X1 – avg monthly income of males

X2- avg monthly income of females

Therefore, independent sample t test is used

Step 4- we have assumed the level of significance to be 5%

α = 0.05,

therefore, confidence level becomes 95%

step 5- set the decision rule p value

if p <= 0.05, accept H1

otherwise accept H0

step 6- calculations and reports generated through SPSS

Group Statistics

gender N Mean Std. Deviation Std. Error Mean

female 6 3.00 1.095 .447


income
male 4 2.00 1.155 .577
Independent Samples Test

Levene's Test for t-test for Equality of Means


Equality of
Variances

F Sig. t df Sig. (2- Mean Std. Error 95% Confidence


tailed) Difference Difference Interval of the
Difference

Lower Upper

Equal
variances . . 1.386 8 .203 1.000 .722 -.664 2.664
assumed
income
Equal
variances not 1.369 6.316 .218 1.000 .730 -.766 2.766
assumed

Step 7- conclusive findings

From the 1st table we find that,

N1=6

N2=4

X1>X2 = 3.00>2.00

SD1<SD2 = 1.095<1.155

Therefore we calculate coeff of variation = (SD/Mean)*100

CV1 = 0.365

CV2 = 0.577

Since CV1<CV2, males have more monthly income than that of females

From 2nd table

P value is 0.203 >0.05, therefore , null hypothesis is accepted

We conclude that there is no significant difference between the avg monthly income of males and
females

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