Research and Evaluation: Education And It's Influence on Higher Salaries

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One Sample Hypothesis Testing � PAGE �1�

Education And It's Influence on Higher Salaries

University of Phoenix

RES 342



Education And It's Influence on Higher Salaries

As children grow and finish high school, society tells them the next step in life is to obtain a college education. Obtaining a degree is important because it will allow for greater opportunities and a better salary in any field of interest. Many occupations require a positive education qualification and one must possess this requirement in order to apply and be considered. However, is it true that higher education has a significant influence on higher salaries? And if higher education has an influence, how much education is sufficient, or are there other factors such as experience, age, tenure, gender, union or non-union memberships have greater influence.

Previous studies have shown traditionally gender has been a main contributor on differences in salaries, indicating men average higher salaries than women.

Although, many reasons exist for why this statement may be true and are up for debate, this paper's focus is not to address these reasons. Team C's objective is to focus on education and its influence on salary differences for women. In turn asking the question, "does higher education increase salary wages for females?" This is a closed-ended question with only two possible answers: 'yes' or 'no'. One of these answers is asserted by the null hypothesis (H0) and the other by the alternative (Ha). Therefore, Team C needs to see convincing evidence before believing higher education has influenced a higher salary for females.

In order to evaluate such differences, a survey of 100 employees was conducted in a Southern, California community where manufacturing and construction industries employ most of the individuals. Out of the 100 individuals surveyed 47 were females; 7 of the...