explain the potential problem with the following research plan and prepose a pos

Question

explain the potential problem with the following research plan and prepose a possible solution to address it. A research is interested in determining whether a large aerospace firms guilty of gender dis crimination in setting wages. to determine the existence of the potential discrimination. the research collects salary and gender information for all of the firm's engineers. The researcher theb runs a simple regression of wage on female (a dummy that takes 1 for female engineers and 0 otherwise) and plans to test if the mean salary of female engineers is statisfically significantly lower than that of male engineers.

Explanation / Answer

the potential problem with this research plan is:-

1)salary in a company is decided on the basis of a position an individual holds.

2)there may be females getting higher wages based on their performance and position.

possible solution to this research plan is:-

1)the research should be done on the basis of position held by individual.

2)gender ratio for a particular position in company.

3)overall gender ratio of the company.

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