Question

An economist with the Liquor, Hospitality and Miscellaneous Workers' Union collected data on the weekly salaries of workers in the hospitality industry in Cairns and Townsville. The union believed that the weekly salaries in Cairns were higher and they were mounting a case for the equalisation of salaries between the two cities. The researcher took samples of size 28 and 34 in Cairns and Townsville respectively, and found that the average and standard deviation of the weekly salaries were $588.50 and $48.92 respectively in Townsville, and $629.85 and $65.47 in Cairns. Use Cairns minus Townsville.

1. Determine a point estimate for the difference in average weekly salary between the two groups (in dollars to 2 decimal places).

2. Calculate the standard error for the difference between the means assuming that the workers' salaries in both locations are normally distributed and have the same population variance (in dollars to 2 decimal places).  

3. Use Kaddstat to determine a 90% interval estimate for the difference between the average weekly salaries in Cairns and Townsville. lower limit and higher limit

Answer 1