Random Samples of Employees from Three Different Departments of MNM

question 110

Essay

Random samples of employees from three different departments of MNM Corporation showed the following yearly incomes (in $1,000s). $$\begin{array} { c c c } \text { Department A } & \text { Department B } & \text { Department C } \\40 & 46 & 46 \\37 & 41 & 40 \\43 & 43 & 41 \\41 & 33 & 48 \\35 & 41 & 39 \\38 & 42 & 45\end{array}$$ At α = .05, test to determine if there is a significant difference among the average incomes of the employees from the three departments.

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Definitions:

Behavioral Economics

A field of economic research that examines how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

Marginal Benefit

The incremental benefit or enjoyment a consumer receives by using one more unit of a good or service.

Economic Payoff

The financial return or reward received from an investment or decision, measured in terms of profit or loss.

Equity

Fairness; everyone gets his or her fair share. Since people can disagree about what is “fair,” equity is not as well defined a concept as efficiency.