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Case: Females, it is said, make 70 cents to the dollar in the United States. To investigate this phenomenon, you collect data on weekly earnings from 1,744 individuals, 850 females and 894 males. Next, you calculate their average weekly earnings and find that the females in your sample earned $346.98, while the males made $517.70.
Question 1: (a) Calculate the female earnings in percent of the male earnings. How would you test whether or not this difference is statistically significant? Give two approaches.
Question 2: A peer suggests that this is consistent with the idea that there is discrimination against females in the labor market. What is your response?
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