An economist is interested inwhether the level of the minimum wage affects employment. In orderto study this issue they got data from a random sample of 322 NewJersey fast food restaurants before and after an increase in the NJminimum wage from $4.25 to $5.05 per hour. The change in full timeequivalent employees per restaurant in the sample before and afterthe increase was 0.80 with a variance of 77.5. Must not be doneusing excel.
- Test whether this suggests the increase in the minimum wage hadan effect on employment.
- What statistical errors might have been made?
- Why might this not answer the question?
