Answer:
Correct option: (c). Two sided t-test.
Step-by-step explanation:
A test is to be performed to determine whether the people with 16 years of education and 12 years of education have wages that are significantly different on average.
A sample is provided for the wages of people in both the category.
Compute the sample mean and sample standard deviations for both the sample using the formulas:
[tex]\bar x=\frac{1}{n}\sum x\\s=\sqrt{\frac{1}{n-1}\sum (x_{i}-\bar x)^{2}}[/tex]
The hypothesis is:
H₀: The wages of the two groups is not different, i.e. μ₁ = μ₂.
Hₐ: The wages of the two groups is not different, i.e. μ₁ ≠ μ₂.
A test for the difference between two means is to be performed.
Since there is no information about the population standard deviations, use a t-test for the difference between two means.
Thus, the correct option is (c). Two sided t-test.