Andy is still stuck on what to do with his work from home policy. He has noticed that only certain types of the town’s employees have been able to take advantage of the policy. He suspects that those who have higher salaries are more inclined to work from home because of the nature of their job.
Using the attached Data Set and SPSS calculate the following and report back to Andy:
Those that work from home in the dataset are coded as “0” under the Location variable and those coded as “1” work from the city offices.
1. Based on the data would you run an independent sample t-test or a paired-sample t-test?
2. What is the mean salary of those who work from home, and what is the mean salary of those who work from the office?
3. Interpret the Levene’s Test, can equal variances be assumed? How do you know?
4. Conduct hypothesis testing in three ways: the test-statistic approach, the p-value approach, and the confidence interval approach. Is the null hypothesis rejected? Demonstrate how you know for each test.
5. Interpret the 95% Confidence Interval
| ID | Location | Salary |
| 1 | 0 | 93575 |
| 2 | 0 | 91776 |
| 3 | 0 | 91629 |
| 4 | 0 | 90029 |
| 5 | 0 | 88880 |
| 6 | 0 | 88873 |
| 7 | 0 | 81624 |
| 8 | 0 | 79984 |
| 9 | 0 | 79393 |
| 10 | 0 | 78958 |
| 11 | 0 | 78475 |
| 12 | 0 | 78015 |
| 13 | 0 | 75773 |
| 14 | 0 | 73260 |
| 15 | 0 | 73244 |
| 16 | 0 | 69799 |
| 17 | 0 | 68942 |
| 18 | 0 | 66433 |
| 19 | 0 | 61939 |
| 20 | 0 | 61853 |
| 21 | 0 | 61397 |
| 22 | 0 | 60612 |
| 23 | 1 | 59793 |
| 24 | 1 | 59385 |
| 25 | 1 | 58120 |
| 26 | 1 | 57840 |
| 27 | 1 | 57743 |
| 28 | 1 | 56079 |
| 29 | 1 | 55758 |
| 30 | 1 | 55672 |
| 31 | 0 | 55665 |
| 32 | 0 | 54217 |
| 33 | 1 | 52390 |
| 34 | 1 | 52111 |
| 35 | 0 | 51372 |
| 36 | 1 | 51270 |
| 37 | 1 | 50551 |
| 38 | 0 | 50399 |
| 39 | 1 | 49383 |
| 40 | 1 | 48384 |
| 41 | 1 | 47257 |
| 42 | 1 | 45685 |
| 43 | 1 | 45007 |
| 44 | 1 | 44908 |
| 45 | 1 | 42995 |
| 46 | 1 | 42109 |
| 47 | 1 | 40957 |
| 48 | 1 | 40136 |
| 49 | 1 | 36559 |
| 50 | 1 | 35136 |