Sunday, December 4, 2011

Quick question about the null hypothesis?

Test if there is any difference between average wages of male and female workers. - In words write down what your null hypothesis is.


We have binary variables where 1=female and 0=male.





Would the null be: The average wage of males - the average wage of females is equal to zero. (Ho: um-uf = 0) or would it be:


The average wage of females - the average wage of males is equal to zero. (Ho: uf-um = 0)





-Thanks.|||I believe you are right, because after you get a value for um-uf, you can compare it to the null and preform hypothesis testing. With the idea that you are trying to reject the hypothesis that male and female wages are equal.|||G's up Ho's down?

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