The Donaldson Corporation Wants to Hire a Temporary Secretary

question 45

Essay

The Donaldson Corporation wants to hire a temporary secretary. There are two employment agencies in town, and it is believed that the average hourly wage charged by both agencies is the same. A Donaldson manager surveyed other employers in town to find what they paid the agencies for temporary secretaries. The results are summarized below. At , test the claim that each agency charges the same hourly wage.

---

Definitions:

Interest Rates

The proportion of interest a borrower is charged for loaned funds.

Bank Credit

The total amount of borrowing capacity available to an individual or entity from a bank or other financial institutions, enabling the borrower to make purchases or investments.

Reserve Requirement

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lending out, set by the central bank.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any notice to the institution.