The CEO of ABC manufacturing conducted a research study to find out the average salaries of his employees in three different job categories. He took into account 363 clerical employees salaries, 27 custodial employees salaries and 84 manager employees salaries. He wanted to know what the difference in pay was between the three different job titles and whether all employees were being paid fairly for their specific job title. He wanted to know if the employees were being properly paid and, if not, if there was a large enough margin (more than 5%) that he would need to adjust one or more of the job categories employees pay. If the margin came out to be greater between the three job categories than the allotted 5%, he would need to reevaluate and rectify the pay situation within his company. Collecting only current data on the three job categories allows him to see what is happening now in his company, not what happened in the past so that he can continue the way he is paying or fix the issues for the future.

• Formulate the null hypothesis and the alternative hypothesis.
• Determine if the null hypothesis should be rejected or retained, based on the results.