The Employees at the East Vancouver Office of a Multinational $\pm$

question 36

Multiple Choice

The employees at the East Vancouver office of a multinational company are demanding higher salaries than those offered at the company office located in Oshawa Ontario. Their justification for the pay difference is that the difference between the average price of single-family houses in East Vancouver and that in Oshawa is more than $60,000. Before making a decision, the company management wants to study the difference in the prices of single-family houses for sale at the two locations. The results of their search of recent house sales are as follows (in $1000, rounded to the nearest thousand) :

Assuming that the population distributions are approximately normal, can we conclude at the 0.05 significance level that the difference between the two population means is greater than $60,000?
If you use the 5% level of significance, what is the critical t value?

• A) 2.228
• B) 1.714
• C) 1.833
• D)\(\pm\) 2.262

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Definitions:

Canadian Pacific Railway

A historic Canadian transcontinental railway completed in 1885, instrumental in the development and settlement of Canada's Western provinces.

Chinese Workers

Laborers from China, often referring to those who have emigrated for work opportunities abroad or within China's vast economy.

Split Labour Market Theory

An economic theory that explains the division of the labor market into separate segments, often based on race or ethnicity, leading to conflict and differential wages.

Edna Bonacich

A renowned sociologist known for her research on labor, immigration, and racial and ethnic relations.