Question: Like many states, the State of Michigan provides grants that firms use to pay for training their employees. These are called incumbent worker training grants. The output below comes from a sample of 32 firms who received the training grants. You want to see whether there was a statistically significant increase in average salary at these firms. “avgsalpre” is the average salary the year before the training was done and “avgsalpost” is the average salary the year after the training was done. Both salary figures are in current dollars.

a. What kind of hypothesis test should you use? Why? Give the appropriate hypothesis set.

b. Test the hypothesis you gave in part a of this question using the Excel output below. What do you conclude about the null hypothesis you are testing?

c. Write up your analysis for this question in plain English. Your answer should be no more than 4 sentences.