The article \"Sex and Race Discrimination in the New-Car Showroom: A Fact or Myt

Question

The article "Sex and Race Discrimination in the New-Car Showroom: A Fact or Myth   " ( J. Consumer Affairs, 1977 pp. 107-113) reported the results of an experiment in which individuals of different races and sexes visited car dealerships to request the best possible deal on a certain car. Consider the following representative (hypothetical) data; each value is the agreed price in dollars:

Dealerships:                  1          2          3           4          5          6          7          8           9   

Black female:              4459 4320 4268 4585 4736 4262 4440 4398 4823  

White male:                 4348 4385 4231 4516 4550 4203 4285 4408 4570

Compute a 95% confidence interval for the true average difference between best price offered black females and white males   

Explanation / Answer

First prepare a table finding the difference, its average and std deviation.

Conf interval = (-106.021, 187.4936)

Dealerships:                  1          2          3           4          5          6          7          8           9    Black female:              4459 4320 4268 4585 4736 4262 4440 4398 4823   White male:                 4348 4385 4231 4516 4550 4203 4285 4408 4570 Dealership 1 2 3 4 5 6 7 8 9 Total Black 4459 4320 4268 4585 4736 4262 4440 4398 4823 40291 White 4348 4385 4231 4516 4550 4203 4285 4408 4570 39496 Difference 111 -65 37 69 186 59 155 -10 253 88.33333 Mean 99.16022 Std dev 95% z value 1.96 Margin of err 194.354 Conf interval Lower bound -106.021 Upper bound 187.4936

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