Your Father Tells You He Earned $2

question 161

Multiple Choice

Your father tells you he earned $2.00 per hour when he was 16 in 1969;you remember making $10.00 per hour in 2003.Given that the CPI was 36.7 in 1969 and 184.0 in 2003,how does your father's 1969 wage (measured in 2003 dollars) compare with your wage in 2003?

• A)Your real wage was more than four times your father's.
• B)You made about $1.00 more in real wages than your father.
• C)The real wages of you and your father were about equal.
• D)The real wages of your father were about $1.00 more than yours.

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Definitions:

Chi-squared Goodness-of-fit Test

A statistical test used to determine if observed data fits an expected distribution.

Expected Frequencies

The anticipated count of occurrences across different categories or intervals, based on a probability model.

Observed Frequencies

The actual number of occurrences or instances recorded in categorized data.

Null Hypothesis

A statement in statistics that there is no significant difference or effect, and any observed difference is due to chance.