Question

union representative decided to bring a wage discrimination case against a manufacturing employer. The claim is that female employees of the company are paid less than the male employees for doing exactly the same work. To test this claim, the union representative selected independent random samples of male and female employees and obtained the following statistics for hourly wage rates. A3. A Male employees Female employees 50 21.50 2.30 42 20.60 2.40 Sample size Average (S/hr) Standard deviation ($/h230 Using the sample data, test the claim made by the union representative that female employees of the company are paid less than the male employees. Use a 5% level of stgnificance (a) (7 marks) List the assumptions on which the calculations in part (a) are based. Indicate whether any of these assumptions may have been violated (b) (3 marks) Calculate a 90% confidence interval for the difference between the population mean hourly wage rates of male and female employees using the sample data in the table above. Interpret the confidence interval indicating what it implies about male and female wage rates for the same work. (c) (3 marks) QUESTIONS CONTINUE OVER PAGE

Answer 1