Step 1:
H0: There is no difference in average household income among the people who
have the different level of education
H1: There is a significant difference in average household income among the people
who have the different level of education
Step 2: Because we have 5 groups of level of education ⇒ use ANOVA
Step 3: Descriptives Statistics
Descriptives
Household income in thousands
95% Confidence Interval
for Mean
Std. Std. Lower Upper
N Mean Deviation Error Bound Bound Minimum Maximum
Did not complete high 1390 59,8662 61,30036 1,64420 56,6408 63,0916 9,00 558,00
school
High school degree 1936 66,2071 72,72591 1,65286 62,9656 69,4487 9,00 837,00
Some college 1360 70,1346 81,03878 2,19747 65,8238 74,4454 9,00 1070,00
College degree 1355 78,6502 92,87753 2,52314 73,7005 83,5999 9,00 1116,00
Post-undergraduate 359 87,1699 94,79998 5,00335 77,3303 97,0096 9,00 1045,00
degree
Total 6400 69,4748 78,71856 ,98398 67,5459 71,4038 9,00 1116,00
The smallest is did not complete high school with mean = 59866$, Std = 61300$
The biggest is Post undergraduate degree with mean = 87169$, Std = 94799
Step 4: Homogeneity of Variance test
Test of Homogeneity of Variances
Household income in thousands
Levene
Statistic df1 df2 Sig.
14,766 4 6395 ,000
Levene’s test: FLevene’s = 14.766, pLevene’s < 0.001 (<=0.05) => Equal
Variances NOT assumed
⇒ ANOVA test could be wrong
⇒ Use the Robust test
Step 5: Robust test of Equality of Mean
ANOVA
Household income in thousands
Sum of Mean
Squares df Square F Sig.
Between 376079,699 4 94019,925 15,309 ,000
Groups
Within Groups 3,928E7 6395 6141,680
Total 3,965E7 6399
Robust Tests of Equality of Means
Household income in thousands
Statistica df1 df2 Sig.
Welch 14,622 4 1900,426 ,000
a. Asymptotically F distributed.
Welch = 14.622, pWelch < 0.001 ⇒ There is at least a significant difference among
5 groups
Multiple Comparisons
Household income in thousands
Tamhane
(I) Level of (J) Level of 95% Confidence
education education Interval
Mean
Difference Std. Lower Upper
(I-J) Error Sig. Bound Bound
Did not complete High school -6,34094 2,3313 ,064 -12,8724 ,1905
high school degree 9
Some college -10,26837* 2,7445 ,002 -17,9587 -2,5781
0
College degree -18,78400* 3,0115 ,000 -27,2233 -10,3447
8
Post- -27,30373* 5,2665 ,000 -42,1229 -12,4846
undergraduate 9
degree
High school Did not complete 6,34094 2,3313 ,064 -,1905 12,8724
degree high school 9
Some college -3,92743 2,7497 ,811 -11,6318 3,7769
0
College degree -12,44306* 3,0163 ,000 -20,8952 -3,9909
2
Post- -20,96279* 5,2693 ,001 -35,7894 -6,1362
undergraduate 0
degree
Some college Did not complete 10,26837* 2,7445 ,002 2,5781 17,9587
high school 0
High school 3,92743 2,7497 ,811 -3,7769 11,6318
degree 0
College degree -8,51563 3,3459 ,105 -17,8907 ,8594
1
Post- -17,03536* 5,4646 ,019 -32,4016 -1,6691
undergraduate 5
degree
College degree Did not complete 18,78400* 3,0115 ,000 10,3447 27,2233
high school 8
High school 12,44306* 3,0163 ,000 3,9909 20,8952
degree 2
Some college 8,51563 3,3459 ,105 -,8594 17,8907
1
Post- -8,51973 5,6035 ,749 -24,2704 7,2309
undergraduate 5
degree
Post- Did not complete 27,30373* 5,2665 ,000 12,4846 42,1229
undergraduate high school 9
degree
High school 20,96279* 5,2693 ,001 6,1362 35,7894
degree 0
Some college 17,03536* 5,4646 ,019 1,6691 32,4016
5
College degree 8,51973 5,6035 ,749 -7,2309 24,2704
5
*. The mean difference is significant at the 0.05 level.
The average household income of group who did not complete high school
degree is 6340$ smaller than the group of the one who have high school
degree, p = 0.064 > 0.05
The average household income of group who did not complete high school
degree is 10268$ smaller than the group of the one who have some college,
p = 0.002 < 0.005
The average household income of group who did not complete high school
degree is 18784$ smaller than the group of the one who have college degree,
p<0.001
The average household income of group who did not complete high school
degree is 27303$ smaller than the group of the one who have post-
undergraduate degree, p<0.001
The average household income of group who have high school degree is
3927$ smaller than the group of the one who have some college, p=0.811 >
0.05
The average household income of group who have high school degree is
12443$ smaller than the group of the one who have college degree, p<0.001
The average household income of group who have high school degree is
20963$ smaller than the group of the one who have post-undergraduate
degree, p=0.001
The average household income of group who have some college degree is
8515$ smaller than the group of the one who have college degree, p=0.105
> 0.05
The average household income of group who have some college degree is
17035$ smaller than the group of the one who have post-undergraduate
degree, p=0.019 >0.001
The average household income of group who have college degree is 8520$
smaller than the group of the one who have post-undergraduate degree,
p=0.749 >0.05