In a wage discrimination case involving male and female employees, independent s

Question

In a wage discrimination case involving male and female employees, independent samples of male and female employees with 5 or more years of experience in the same position provided the following salary data (in thousands): A. Using the partial Excel output provided below, construct a 95% confidence interval estimate of the mean difference in salaries for male and female employees. Be certain that your interval estimate is in the correct final format, as discussed in class. Interpret the practical meaning of this interval estimate, in plain English. Using the partial Excel output provided below, and a significance level of alpha =.05, do the sample data suggest that there is a significant difference between the average salaries of male and female employees? Do a complete and appropriate hypothesis test using the critical value approach and the 5-step procedure discussed in class. Using only the appropriate statistical table in your textbook, what is the most accurate statement you can make about the p-value of the hypothesis test you conducted in part B?

Explanation / Answer

a. 95% ci is given by following formula.

ci=(M1-M2)plus minus t*SM1-M2

=0 plus minus 2.23861330*0.74450852

=0 plu sminus 1.667

= -1.667 to 1.667

-1.67 (confidence level 95% lower)

1.67 (confidence level 95% upper)

One can be 95% confident that in a population the true difference in salary of female and male employees with 5 year sor more experience in same position is betwen -1.67 to 1.67.

b. At df=21 and t=2.24, the range of p value is from 0.02 to 0.05.

Hypotheses:

H0: mu1=mu2 (There is no difference in salary of female and male)

H1:mu1 not equal to mu2 (There is difference in salary among female and male)

Select suitable test statistic.

The sample size is less than 30 and population standard deviation is unknown, perform 2-samplet test.

Test statistic

t(given)=2.23861330

Compute critical region and conclude.

At df=21, alpha=0.05, the t critical value is 2.080. The test statistic falls in critical region, therefore, reject null hypothesis to conclude that there is significant difference in salary of female and male under given conditions.

c. 0.02<p<0.05

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