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We select random samples from several racial/ethnic categories (Caucasian, African American, Hispanic, Asian American) to determine if there is a difference in overall mean earnings among the groups.Which of the following is the most appropriate statistical test to use to test if their is a difference in overall mean earnings among different racial/ethnic groups? Matched pairs t-test ANOVA Inference for regression Two-sample t-test Chi-squared test for independence

Question

We select random samples from several racial/ethnic categories (Caucasian, African American, Hispanic, Asian American) to determine if there is a difference in overall mean earnings among the groups.Which of the following is the most appropriate statistical test to use to test if their is a difference in overall mean earnings among different racial/ethnic groups? Matched pairs t-test ANOVA Inference for regression Two-sample t-test Chi-squared test for independence

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Solution

The most appropriate statistical test to use in this scenario would be ANOVA (Analysis of Variance). This test is used when you want to compare the means of more than two groups, which is the case here as you have four racial/ethnic categories you want to compare. The ANOVA test will tell you if there is a statistically significant difference in the mean earnings among these groups.

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