Workers with High Earnings Potential Are Likely to Earn More

question 5

Multiple Choice

Workers with high earnings potential are likely to earn more and to have better working conditions than workers with low-earnings potential.This positive correlation between earnings and working conditions:

• A)makes it easy to find evidence that workers trade off some earnings in exchange for better working conditions.
• B)makes it difficult to find evidence of compensating wage differentials associated with working conditions.
• C)suggests low-skill and high-skill workers have similar working conditions.
• D)suggests high-skill workers are typically overpaid.
• E)suggests low-skill workers are more efficient per dollar paid in wages plus fringe benefits than are high-skill workers.

---

Definitions:

P-Value

A statistical measure that helps researchers determine if their hypothesis is supported, indicating the probability of observing the obtained results, or more extreme, if the null hypothesis is true.

Power of the Test

The probability that a statistical test will correctly reject a false null hypothesis, or its ability to detect an effect when there is one.

True Value

The actual or real value of a parameter which is estimated in a study.

Sample Size

The number of individual observations or data points collected in a sample from a larger population.