Nursing wages

Two Sample Test of Hypothesis

1. Mary Jo is the Vice President of Nursing services at St. Luke’s Memorial Hospital. Recently she noticed that in the job postings for nurses that those that are unionized seem to offer higher wages. She decided to investigate and gathered the following sample information.

Group Mean Wage Sample Std Deviation Sample Size
Union $20.75 $2.25 40
Nonunion $19.80 $1.90 ; 45

Would it be reasonable for her to conclude that union nurses earn more? Use the .02 significance level.

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