QUESTION 3 Study the information provided below and answer all questions that follow. Economic theory suggests that workers pay is mainly determined by their marginal product and that industry wage differentials may result either from the structure of the industry or human capital characteristics of the employed labour force (Davis, 2012 Du Caju, 2010). However, recent findings appear to suggest that institutional characteristics, worker ability, and job design characteristics together explain a significant portion of wage premium across industries (McCausland, Summerfield & Theodossiou, 2020). A labour analyst has hypothesized that as an industry reaches maturity, employee remuneration tends to converge across firms in that industry. Suspecting that the South African Telecommunications sector is a mature industry, the analyst wants to determine whether employee remuneration is converging across the sector. Using recent data on current remuneration packages of individuals who were interviewed for similar middle management level jobs at the six JSE-listed South African telecommunications companies (Table 3.1), the output in Figure 3.1 to Figure 3.3 was generated from the data analysis. Table 3.1: Excerpt of research data Interviewee Ref # Current company of employment Interviewee's current annual gross remuneration (Rands) 1 MTN 560 000 2 Vodacom 600 000 3 Telkom SA 550 000 4 Vodacom 590 000 5 Blue Label 520 000 6 Telkom SA 620 000 7 Vodacom 610 000 8 Huge 550 000 9 MTN 650 000 10 TeleMasters Holdings 510 000 .... .... .... 100 Blue Label 590 000 Figure 3.1: Case Processing Summary Company Cases Valid Missing Total N Percent N Percent N Percent Annual_gross_remuneration Blue_Label 5 100.0% 0 0.0% 5 100.0% Huge 5 100.0% 0 0.0% 5 100.0% MTN 30 100.0% 0 0.0% 30 100.0% TelkomSA 20 100.0% 0 0.0% 20 100.0% TeleMasters 10 100.0% 0 0.0% 10 100.0% Vodacom 30 100.0% 0 0.0% 30 100.0% Figure 3.2: Descriptives Annual_gross_remuneration N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean Lower Bound Upper Bound Minimum Maximum Blue_Label 5 550000 65192.02 29154.76 492856.67 607143.33 450000 610000 Huge 5 534000 41593.27 18601.08 497541.89 570458.11 480000 590000 MTN 30 564200 49061.60 8957.38 546610.20 581723.13 450000 640000 TelkomSA 20 570450 46711.29 10444.96 549977.87 590922.13 480000 635000 TeleMasters 10 562500 52241.43 16520.19 530120.43 594879.57 450000 620000 Vodacom 30 570850 51362.19 9377.41 552453.61 589213.06 450000 650000 Total 100 5.8214 49632.57 4963.26 555312.02 574767.98 450000 650000 Figure 3.3: ANOVA Annual_gross_remuneration Sum of Squares df Mean Square F Sig. Between Groups 7628056666.67 5 1525611333 .607 .695 Within Groups 236247783333.33 94 2513274291 Total 243875840000.00 99 3.1 State the independent variables (IV) and dependent variable (DV) used in the investigation. (2 marks) 3.2 Formulate the null and alternative hypotheses for the analysts investigation. (4 marks) Identify the statistical tests employed in the data analysis and state whether it is a parametric or non-parametric test. State the most probable reason why the labour analyst conducted this particular test. 3.3 (4 marks) 3.4 Provide a comprehensive interpretation of the output of the data analysis. Your interpretation should adhere to the standard (7 marks) reporting format. The labour analyst decided not to conduct a post-Hoc test for a pairwise comparison of remunerations across the six companies. Briefly explain whether or not the analysts decision is statistically justified.