Question: Two Sample Test of Hypothesis- Unpaired test of Hypothesis t-test
Gender Discrimination? Your firm is being sued for gender discrimination and you are asked to evaluate the data. There appears to be a highly significant difference between men's and women's salaries. The table below presents the findings:
DATA WOMEN MEN
Sample size 15 22
Average salary $24, 467 $33,095
Standard deviation 2,806 4,189
Standard error 724 893
The issue is whether the difference in salary is within the usual random variation or not. The question is whether such a large difference in salary could be the result of a random allocation of salaries or if there is a need for some other explanation for the apparent inequity.
- State the null and alternative hypothesis
- State the decision rule
- Calculate the appropriate test statistic,
- Indicate your decision regarding H0