A preliminary study of hourly wages paid to unskilled employees in three metropolitan areas was conducted. Seven employees were included from Area A,nine from Area B,and twelve from Area C. The test statistic was computed to be 4.91. What can we conclude at the 0.05 level?
A)The mean hourly wages of unskilled employees of all areas are equal.
B)The mean hourly wages in at least two metropolitan areas are different.
C)More degrees of freedom are needed.
D)None of these is correct.

Question

Quizplus · Accepted Answer

The test statistic of 4.91 is greater than the critical value at the 0.05 level for two-tailed test with (3-1) = 2 degrees of freedom (t=2.92), which indicates that we reject the null hypothesis that the mean hourly wages of unskilled employees of all areas are equal. Therefore, we can conclude that the mean hourly wages in at least two metropolitan areas are different.

A Preliminary Study of Hourly Wages Paid to Unskilled Employees