The purpose of this research is to explain the application of statistical procedures to the solution of a realistic problem. In this instance, the problem is related to the domestic economy of the United States.
The level of unemployment is a matter of significant concern to both the general public and political leaders. In order to develop effective policies to address the unemployment issue, it is necessary to understand how the unemployment rate is related to other factors. It is this problem which is addressed in this research.
A total of six hypotheses were formulated for, and tested in the performance of this research. These hypotheses were stated as follows:
1. It is hypothesized that the rate of civilian unemployment in the United States changes linearly and inversely to changes in the gross national product.
2. It is hypothesized that changes in the unemployment rate are more extreme for nonwhites than for whites.
3. It is hypothesized that changes in the unemployment rate are more extreme for females than for males.
4. It is hypothesized that changes in the unemployment rate are more extreme for persons under the age of 20 years old in the economy than for those persons aged 20 years old and older.
5. It is hypothesized that changes in the unemployment rate are more extreme for part-time workers than for full-time workers.
6. It is hypothesized that changes in the unemployment rate are more extreme for inexperienced workers than for experienced workers.
The data were analyzed and the hypotheses tested through the application of correlation analysis to the appropriate sets of data. A t test was employed to test the statistical significance of the correlation coefficient at the p<.05 level.
The unemployment rate data for the various classifications (racial, gender, age, employment status, and work experience) provided a descriptive analysis of the unemployment situation in the...