In October, the Campus Bookstore Asked a Random Set of Freshmen

question 17

Multiple Choice

In October, the campus bookstore asked a random set of freshmen and seniors how much they had spent on textbooks that semester. The bookstore believes that the two groups spent the same amount. What is an appropriate test value for a $z$ test?
$\begin{array}{lcc}\hline & \text { Freshmen } & \text { Seniors } \\\hline \text { Sample size } & 80 & 70 \\\text { Sample mean } & \$ 460 & \$ 440 \\\text { Population std. dev. } & \$ 52 & \$ 63 \\\hline\end{array}$

• A) 9.51
• B) 1.21
• C) 0.22
• D) 2.10

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Definitions:

Craft Unions

Labor unions representing workers with specific skills or crafts, often in the same or related industries.

Nominal Wages

Wages that are paid to workers in current dollars, without adjustment for inflation.

Price Level

A measure of the average of current prices across the entire spectrum of goods and services produced in the economy.

Real Wages

Wages adjusted for inflation, representing the purchasing power of the income received by workers for their labor.