We are interested to see whether the level of the minimum wage affects employment. In order...

We are interested to see whether the level of the minimum wage affects employment. In order to study this issue they got data from a random sample of 330 California fast food restaurants before and after an increase in the Californian minimum wage from $3.30 to $4.10 per hour. The change in full time equivalent employees per restaurant in the sample before and after the increase was 0.8 with a variance of 77.5.

Test whether this suggests the increase in the minimum wage had an effect on employment.

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Expert Solution

This does not suggest that the increase in the minimum wage had an effect on employment.

orchestra answered 11 months ago

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