Birth order, IQ, and earnings. Recent research suggests

Chapter 7, Problem 38E

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QUESTION:

Problem 38E

Birth order, IQ, and earnings. Recent research suggests that your annual pay is linked to your birth order— firstborn individuals tend to earn higher salaries than non- firstborn individuals. The evidence on whether IQ is associated with birth order is not as conclusive. An international team of economists investigated the possible link between IQ and birth order in CESifo Economic Studies (Vol. 57, 2011). The data source for the research was the Medical Birth Registry of Norway. It is known that the mean IQ (measured in stanines) for all Norway residents is 5.2 points. In the study, a sample of 581 Norway residents who were the sixth-born or later in their families had a mean IQ score of 4.7 points with a standard deviation of 1.8 points. Is this sufficient evidence to conclude that the mean IQ score of all Norway residents who were the sixth-born or later in their families is lower than the country mean of 5.2 points? Use  as a measure of reliability for your inference.

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QUESTION:

Problem 38E

Birth order, IQ, and earnings. Recent research suggests that your annual pay is linked to your birth order— firstborn individuals tend to earn higher salaries than non- firstborn individuals. The evidence on whether IQ is associated with birth order is not as conclusive. An international team of economists investigated the possible link between IQ and birth order in CESifo Economic Studies (Vol. 57, 2011). The data source for the research was the Medical Birth Registry of Norway. It is known that the mean IQ (measured in stanines) for all Norway residents is 5.2 points. In the study, a sample of 581 Norway residents who were the sixth-born or later in their families had a mean IQ score of 4.7 points with a standard deviation of 1.8 points. Is this sufficient evidence to conclude that the mean IQ score of all Norway residents who were the sixth-born or later in their families is lower than the country mean of 5.2 points? Use  as a measure of reliability for your inference.

ANSWER:

Solution:

Step 1 of 2:

It is given that an investigation was undertaken to study whether IQ is related with birth order .

The mean IQ of the Norway residents was found to be 5.2 points.

To study this, a sample of 581 Norway residents who are sixth born or later in the family are taken and their mean IQ was found to be 4.7 points with a standard deviation of 1.8 points.

Using this data we have to test whether mean IQ of Norway residents who are sixth born or later in their families is lower than 5.2 or not at =0.01.


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