TEST OF INDEPENDENCE

Independent Sample t-Test

Independent Sample t-Test

Introduction

The data has been taken from the General Social Survey (GSS) Data Disk of 2008 Cross Panel Data. Two variables have been selected from the entire data set for this research paper. These include “Race of the Respondent” as Independent Variable and the “Total Family Income of the Respondent” as Dependent Variable. Race of the Respondent” is a nominal variable and the “Total Family Income of the Respondent” is a continuous variable measuring the income level on Likert scale. Overall, there are 3559 respondents, who have been covered in the survey. This enhances the accuracy of the results as the error is spread across a large number of respondents included in the study. This research examines the impact of race group on the income level of the respondent. Past researches show that the income of an individual is significantly linked with the race of the individual. Race of Respondent is categorized in two segments included in the analysis. Segments were categorized on the basis of origin. These include White Americans and Black Americans.

Descriptive Statistics Analysis

Group Statistics

RACE OF RESPONDENT

N

Mean

Std. Deviation

Std. Error Mean

FAMILY INCOME IN CONSTANT $

WHITE

2476

30844

37031.749

744.216

BLACK

441

21904

21172.418

1008.210

Standard deviation was comparatively lesser of family income in respondents belonging to Black American race group. Standard deviation of family income in white people was 37031.75 compare to 21172.42. Std. error mean in family for people belonging to the white race was 744.with mean value of $30844 as compare to the mean value of $21904 in black people. Since the sample size was very large, therefore higher deviation rate of family income level shows that family income level is consistent in a group of people belonging to White segment in race. Higher sample size and test result for large population size may increase the viability of results based for predicting the family income of people belonign to white and black races (Creswell,2009).

Measures of Central Tendency

Table presented shows the measures of central tendency for the Family Income of respondents and race group. This table shows the overall picture of the data set. The numerical descriptive measures are calculated from the sample that summarizes the information contained therein. The variable of race is a nominal variable which we have described as 1 = “White”, 2 = “Black” and 3 = “Others”. Majority of the respondents included in the research were whites. However, family income was categorized in as scale variable to determine the continuity in the level of income.

There were 3599 respondents included in the study. However, 377 respondents did not disclose their income level due to unstated reason. A considerable gap has been observed in the standard deviation value which moved to 35856 for the income level across all race groups. If we ignore the lower end implication of the value, it shows that average total family income of people (included all groups) can be increased greatly even greater than $35852. This represents the maximum limit for the family income level at $146154. However, measure of central tendency shows that income level ...