Reference no: EM13579040

Question: Two Sample Test of Hypothesis- Unpaired test of Hypothesis t-test

Gender Discrimination? Your firm is being sued for gender discrimination and you are asked to evaluate the data. There appears to be a highly significant difference between men's and women's salaries.  The table below presents the findings:

DATA                          WOMEN                MEN

Sample size                  15                       22

Average salary         $24, 467              $33,095

Standard deviation     2,806                  4,189

Standard error            724                      893

The issue is whether the difference in salary is within the usual random variation or not.  The question is whether such a large difference in salary could be the result of a random allocation of salaries or if there is a need for some other explanation for the apparent inequity.

• State the null and alternative hypothesis
• State the decision rule
• Calculate the appropriate test statistic,
• Indicate your decision regarding H₀