An Australian Tyre Manufacturer Operates a Plant in Melbourne and Another

question 6

Essay

An Australian tyre manufacturer operates a plant in Melbourne and another plant in Adelaide. Employees at each plant have been evenly divided among three issues (wages, working conditions and super benefits) in terms of which one they feel should be the primary issue in the upcoming contract negotiations. The secretary of the union has recently circulated pamphlets among the employees, attempting to convince them that super benefits should be the primary issue. A subsequent survey revealed the following breakdown of the employees according to the plant at which they worked and the issue that they felt should be supported as the primary one. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Issues }$$\begin{array} { | l | c | c | c | } \hline \text { Plant Location } & \text { Very interesting } & \text { Fairly interesting } & \text { Not interesting } \\\hline \text { Melbourne } & 60 & 62 & 78 \\\hline \text { Adelaide } & 70 & 56 & 74 \\\hline\end{array}$ Can you infer at the 5% significance level that the proportional support by the Adelaide employees for the three issues has changed since the pamphlet was circulated?

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Definitions:

Demand Curve

A curve on a graph that exhibits the quantity of a good that consumers are prepared to buy at different prices.

Income

Regular earnings from employment or investment returns.

Product

An item that is created through a process and is offered for sale to consumers in the market.

Market Demand Curve

A graphical representation showing the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.