A preliminary study of hourly wages paid to unskilled employees in three metropolitan areas was conducted. Seven employees were included from Area A, 9 from Area B, and 12 from Area C. The test statistic was computed to be 4.91. What can we conclude at the 0.05 level?
A) Mean hourly wages of unskilled employees of all areas are equal
B) Mean hourly wages in at least 2 metropolitan areas are different
C) More degrees of freedom are needed
D) None of these is correct

Question

Quizplus · Accepted Answer

The computed test statistic (4.91) is greater than the critical value of 2.52 (using a two-tailed test at the 0.05 level with 23 degrees of freedom). Therefore, we reject the null hypothesis and conclude that the mean hourly wages in at least two metropolitan areas are different.

A Preliminary Study of Hourly Wages Paid to Unskilled Employees