A preliminary study of hourly wages paid to unskilled employ

A preliminary study of hourly wages paid to unskilled employees in three metropolitan areas was conducted. Seven employees were included from Area A, 9 from Area B, and 12 from Area C. The test statistic was computed to be 4.91. What can we conclude at the 0.05 level?

Solution

Here,

df1 = number of groups - 1 = 3 - 1 = 2

df2 = number of partcipants - number of groups = (7 + 9 + 12) - 3= 25

Thus, looking at table/technology, at 0.05 level,

Fcrit = 3.385189961

As F = 4.91 > Fcrit, then WE REJECT THE NULL HYPOTHESIS:

OPTION A: Mean hourly wages in at least 2 metropolitan areas are different. [OPTION A, ANSWER]