A Preliminary Study of Hourly Wages Paid to Unskilled Employees

question 51

Multiple Choice

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 D 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.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, intending to protect consumers from excessive prices.

Price Floor

A price floor is a government- or authority-imposed minimum price set above the equilibrium price, preventing the market price from falling below it.

Shortage

A situation where demand for a product or service exceeds its supply in a market.

Surplus

The amount by which the quantity supplied of a good exceeds the quantity demanded at a specific price.