The Table below shows data of two random samples of employeewages taken from two small business firms providing the sameservice. The issue to be evaluated is whether the average wage inthese two firms is the same. Test this hypothesis at α =0.05.
Values of Test-Statistics, zo, critical statistic are ?? and thedecision is to ....
Wages from two small business firms
Observation # | Wages in Firm A ($) | Wages in Firm B ($) | Observation # | Wages in Firm A ($) | Wages in Firm B ($) |
1 | 29363 | 34035 | 19 | 39034 | 35606 |
2 | 39535 | 31466 | 20 | 33363 | 33632 |
3 | 38587 | 31027 | 21 | 29784 | 37682 |
4 | 36103 | 29679 | 22 | 29864 | 35320 |
5 | 34304 | 38730 | 23 | 34093 | 29587 |
6 | 43698 | 33258 | 24 | 39914 | 30293 |
7 | 32119 | 33979 | 25 | 40139 | 29658 |
8 | 37081 | 32870 | 26 | 22099 | 30544 |
9 | 40069 | 33578 | 27 | 37759 | 36973 |
10 | 44344 | 33946 | 28 | 35928 | 32826 |
11 | 36377 | 28985 | 29 | 36832 | 37557 |
12 | 43284 | 33640 | 30 | 30786 | 25704 |
13 | 43229 | 35110 | 31 | 33870 | 29079 |
14 | 29988 | 34993 | 32 | 35884 | 32816 |
15 | 32308 | 31458 | 33 | 40703 | 30827 |
16 | 37747 | 32321 | 34 | 28414 | 31136 |
17 | 32830 | 30939 | 35 | 30870 | 34792 |
18 | 26695 | 31492 | 36 | 34301 | 34860 |
| | 2.578, 1.96, Reject that mu (wage-Firm A) = mu (wage-FirmB). |
| | 2.578, 1.96, Reject that mu (wage-Firm A) > mu (wage-FirmB).  |
| | 2.008, 2.58, Fail to Reject that mu (wage-Firm A) = mu(wage-Firm B).  |
| | None of the above |
