Question

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. Mean hourly wages in at least 2 metropolitan areas are different
b. More degrees of freedom are needed
c. Mean hourly wages of unskilled employees of all areas are equal
d. None of these is correct

Answer 1

Answer:

Mean hourly wages in at least 2 metropolitan areas are different

Step-by-step explanation:

0.05 level indicates a 5% risk of concluding that a difference exists even  though there is no actual difference.

A test statistic is a refers to a quantity derived from the sample and it is used in statistical hypothesis testing.

A statistical hypothesis refers to a hypothesis that can be tested on the basis of observing a process that has been modelled as compared to a set of random variables.

It is a method of statistical inference.

In the given question,the test statistic was computed to be 4.91 at the o.05 level as seven employees were included from Area A, nine from Area B, and twelve from Area C when a preliminary study of hourly wages paid to unskilled employees in three metropolitan areas was conducted.

This implies mean hourly wages in at least 2 metropolitan areas are different.