An Australian Tyre Manufacturer Operates a Plant in Melbourne and Another

question 40

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. $$\begin{array} { | l | c | c | c | } \hline && { \text { Issues } } \\\hline \text { Plant Location } & \text { Very interesting } & \text { Fairly interesting } & \text { Not interesting } \\\hline \text { Mel bourne } & 60 & 62 & 78 \\\hline \text { Adelaide } & 70 & 56 & 74 \\\hline\end{array}$$ Can you infer at the 5% significance level that the proportional support by the employees at both plants for the issues has changed since the pamphlet was circulated?

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Definitions:

Equilibrium

A state where supply and demand balance each other, and as a result, prices become stable.

MU/P

Marginal Utility per Price, a concept in economics that represents the additional utility or satisfaction obtained per unit of expenditure.

Consumer Behavior

The examination of the ways in which individuals, groups, and entities choose, purchase, utilize, and discard products, services, ideas, or experiences to fulfill their wants and needs.

Marginal Utility

The change in satisfaction or utility a consumer receives from consuming an additional unit of a good or service.