Question

A large firm is accused of gender discrimination in its business practice. Samples of 100 men and 64 women with similar job descriptions are selected randomly. The statistics of the sample are: average salary of men $3360, average salary of women $2,600, variance of men’s salaries 600,000 (squared dollars), variance of women’s salaries 256,000 (square dollars).

A) What is the standard error of the (sample) salary difference?

B) What is the t* of the salary difference?

C) Is there statistical evidence to establish that the pay of men and women in the firm is different?

Answer 1