Introduction
This study aims to examine the average hourly wage of employees in a retail company. Hourly wage is a ratio-level variable as it has a true zero point. The data for this study was obtained by randomly sampling 10 employees from the company and recording their hourly wages.
The data is presented in Table 1.
    Employee
    Hourly Wage
    1
    $12.50
    2
    $11.75
    3
    $13.25
    4
    $14.00
    5
    $12.00
    6
    $15.50
    7
    $13.75
    8
    $12.25
    9
    $11.50
    10
    $14.25
Step 1:
Null and Alternative hypothesis is given by,
Employees in a retail company make an average of $15 per hour.
Employees in a retail company do not make an average of $15 per hour.
Step 2: Determining the level of significance.
The level of significance for the two-tailed tests.
Step 3: Test statistic calculation.
The t-test statistic is calculated using the below formula,

The mean hourly wage of the sample is $13.075 and the standard deviation is $1.29126 obtained in Excel.
Note: The sample size is equal to 10
Substituting the obtained values in the above formula we get the t-test statistic equal to...