Using Bayesian One Sample Inference models to estimate the Bayes factors for current and beginning salaries

A small business owner with under 500 employees wants to determine if the employees' current and beginning salaries are normally distributed. By analyzing the 474 employee records, the business owner has observed the current and beginning salaries, both of which are assumed to be normally distributed. The business owner first applies the log transformation, and assumes that the logarithm of the current and beginning salaries are normally distributed. Assuming that the variance of the logarithm of beginning salary is known, the business owner wants to use Bayesian methods to test whether the mean value for the logarithm of current and beginning salaries is $10.35 and $9.50, respectively.

This information is collected in Employee data.sav. See the topic Sample Files for more information.

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