X's labour market statistics show that the average cost of labour to a company per employee per hour is 35.09 in Belgium and 33.91 in Denmark. Suppose these figures were obtained from surveying 14 Belgian workers and 15 Danish workers and that their respective population standard deviations are 3.38 and 3.51. Assume that hourly labour costs per employee are normally distributed in the population.

(i) Calculate a 98% confidence interval to estimate the difference in the mean hourly company labour costs for these two groups. What is the value of the point estimate? (15 marks)

(ii) Test to determine whether there is a significant difference in the hourly costs employers pay per employee between Belgian and Danish workers. Use a 2% level of significance. (15 marks)