Question 2 Still interested in the effect of the minimum wage on employment, the economist compared...
Question 2
Still interested in the effect of the minimum wage on employment, the economist compared the change in employment in New Jersey (see the previous question) with that in Pennsylvania, which saw no change in the minimum wage over the period. A sample of 77 Pennsylvanian fast food restaurants saw an average change in employment of -1.91 with a variance of 122.5.
- Assuming different variances, is the change in employment in New Jersey statistically different from that in Pennsylvania?
- Test the assumption of different variances.
c). How might this enable us to address the impact of the minimum wage on employment better than in the first question?
Homework Answers
a)
p-value = 2 P(t > |TS|) = 0.0479
since pv-alue < alpha (0.05)
we reject the null hypothesis
we conclude that there is evidence of significant difference
b)
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Question 2
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Consider the monthly data, including the estimates for March
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is increasing more than money supply.
b.
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