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Income Impact of Wireless Service

The study tests the hypothesis that there is a difference in average household income between users and non-users of wireless service using an independent samples t-test. Results show a significant difference, with wireless service users earning an average of $16,336 more than non-users, and the p-value is less than 0.001. The assumption of homogeneity of variance was not met, leading to the conclusion that H1 is supported.

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37 views1 page

Income Impact of Wireless Service

The study tests the hypothesis that there is a difference in average household income between users and non-users of wireless service using an independent samples t-test. Results show a significant difference, with wireless service users earning an average of $16,336 more than non-users, and the p-value is less than 0.001. The assumption of homogeneity of variance was not met, leading to the conclusion that H1 is supported.

Uploaded by

phuongbui.31221020581
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Step1:

H0: there is no difference of the average household income between the one using wireless
service and the one not using wireless service
H1: there is a significant difference of the average household income between the one using
wireless service and the one not using wireless service
Step2: methodology: Independent samples t-test
Step3: descriptive statistics: N, mean, STD

Group Statistics
Std. Error
Wireless service N Mean Std. Deviation Mean
Household income in No 3853 62.9735 67.03762 1.07999
thousands Yes 2547 79.3098 92.81293 1.83905
Step4: Assumption of the homogeneity of variance
Independent Samples Test
Levene's
Test for
Equality of
Variances t-test for Equality of Means
95% Confidence
Sig. Interval of the
(2- Mean Std. Error Difference
F Sig. t df tailed) Difference Difference Lower Upper
Household Equal 73.179 .000 -8.168 6398 .000 -16.33625 2.00002 - -
income in variances 20.25696 12.41554
thousands assumed
Equal -7.660 4269.2 .000 -16.33625 2.13272 - -
variances 56 20.51749 12.15501
not
assumed
Levene’s test
F levene’s test = 73.179; P levene’s test = 0.001 , <0.05
=> equal variance NOT assumed
Step5: T-Test result
T= -7.660 ; p < 0.001
=> There is a significant difference of the average household income between the one using
wireless service and the one not using wireless service => H1 supported
=> The average income of the group using wireless service is 16 336$ higher than the group
who don’t and it is significant at 0.001 level
Sig (p-value) = 0.001

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