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 all areas are equal.
B) Mean hourly wages in at least 2 metropolitan areas are different.
C) More degrees of freedom are needed.

Question

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 all areas are equal.
B) Mean hourly wages in at least 2 metropolitan areas are different.
C) More degrees of freedom are needed.

Quizplus · Accepted Answer

Since the test statistic is significant at the 0.05 level, we can reject the null hypothesis that the mean hourly wages of unskilled employees in all areas are equal. Therefore, we can conclude that the mean hourly wages in at least 2 metropolitan areas are different.

A Preliminary Study of Hourly Wages Paid to Unskilled Employees