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Find significance levels that reject a wage claim

In year 2008, a survey was done by the Ministry of Manpower (MOM) to determine the amount of daily wages, denoted as XX, that part-time workers were receiving. Past records show that on average, the wages that each worker received was $30.

A year later, MOM wants to find out if there is a change in the mean wage. Data from 90 workers are collected and their wages are summarized as shown below:

xˉ=31,∑(x−31)2=1947.\bar x=31,\qquad\sum(x-31)^2=1947.

Calculate the unbiased estimate of the variance of XX . mark

MOM decides to do a test on the collected data. Find the range of values of α\alpha if MOM were to conclude that there is a change in the mean wage at α%\alpha\% level of significance. marks

[2009/NJC/II/7(part of)]

CJC · Review problems · Question 3

Compare p with α/100, because α is expressed as a percentage.

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