The following table shows the average hourly wage rates for day care centers from the Northeast and Midwest regions of the United States based on two random samples:

a. Perform a hypothesis test using α = 0.05 to determine if the average hourly wage for day care workers in the Northeast is $ 0.50 per hour higher than day care workers in the Midwest. Assume the population variances for wage rates in each region are equal.

b. Approximate the p value using Table 5 in Appendix A and interpret the results.

c. Determine the precise p value using Excel.

d. Verify your results using PHStat.

e. What assumptions need to be made in order to perform this procedure?

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Northeast Midwest $9.60 $8.60 Sample mean Sample standard deviation S25 S1.20 Sample size 26 31