In order to determine whether or not there is a significant difference between the mean hourly wages paid by two companies (of the same industry), the following data have been accumulated. $$\begin{array} { l l l }
& \text { Company A } & \text { Company B } \
\text { Sample size } & 80 & 60 \
\text { Sample mean } & \$ 16.75 & \$ 16.25 \
\text { Population standard deviation } &\$ 1.00 & \$ .95
\end{array}$$ At the 5% level of significance, the null hypothesis
A) should be rejected.
B) should not be rejected.
C) should be revised.
D) should not be tested.

Question

In order to determine whether or not there is a significant difference between the mean hourly wages paid by two companies (of the same industry), the following data have been accumulated. $$\begin{array} { l l l } 
 & \text { Company A } & \text { Company B } \
\text { Sample size } & 80 & 60 \
\text { Sample mean } & \$ 16.75 & \$ 16.25 \
\text { Population standard deviation } &\$ 1.00 & \$ .95
\end{array}$$   At the 5% level of significance, the null hypothesis
A) should be rejected.
B) should not be rejected.
C) should be revised.
D) should not be tested.

Quizplus · Accepted Answer

The null hypothesis should be rejected because the test statistic calculated using the sample means, sample sizes, and population standard deviations indicates a significant difference between the means at the 5% significance level.

In Order to Determine Whether or Not There Is a Significant