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1 SOC 3811 Basic Social Statistics

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2 Reminder Hand in your Assignment 4

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3 Class overview Compare means of two groups Dummy variable regression model Two sample t-test Group exercise

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4 Dummy Regression Model Do men and women have different wages? H o : = 0 H a : ≠ 0 For males: Female=0, so the average male wages = For females: Female=1, so the average female wages = The difference between the means of male and females =

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5 If -1.96.05 → can ’ t reject the null hypothesis The dummy variable has no influence. The means for two groups are the same If ｜ Z* ｜ ≥ 1.96 or Sig. (p value)≤.05 → reject the null hypothesis The dummy variable does have an influence. The means for two groups are different.

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6 T-test Sampling distribution: the distribution of all possible estimates of the difference in means Sampling distribution of differences in means

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7 T-test How likely is it to draw means with a difference of, if the difference in population means is really 0? If common, we can ’ t conclude anything If rare, we can conclude that the population means differ.

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8 T-test Ho:Ho: H a : For males: the average male wages = For females: the average female wages= The difference between the means of male and females= =

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9 Calculating z/t : For any two means, the difference will also fall in a certain range. We can guess the range in which it typically falls one-tail test two-tail test -1.645 -1.961.96

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10 If -1.96.05 → can ’ t reject the null hypothesis The means for two groups are the same. If ｜ Z* ｜ ≥ 1.96 or Sig. (p value)≤.05 → reject the null hypothesis The means for two groups are different.

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11 Dummy variable regression model

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12 T- test

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15 Dummy Regression model

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16 T-test

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