Last year average wages in an Indian firm were INR 109,658, a sample of 30 employees in the same firm this year gives an average wage of INR 110,986 (standard deviation INR 1,234). Is this evidence of a significant difference in wages? A) No, -1.96

Question

Last year average wages in an Indian firm were INR 109,658, a sample of 30 employees in the same firm this year gives an average wage of INR 110,986 (standard deviation INR 1,234). Is this evidence of a significant difference in wages?
A) No, -1.96 < z < 1.96
B) Yes, they have gone down, z < -1.96
C) Yes, they have gone up z > 1.96
D) There is no evidence of a significant difference

Quizplus · Accepted Answer

The z-score is calculated as (110,986 - 109,658) / (1,234/√30) = 5.99, which is greater than 1.96, indicating a significant increase in wages.

Last Year Average Wages in an Indian Firm Were INR