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Hypothesis Testing: Randomly Selected Pairs of salary levels

Senior partners of an accounting firm are concerned about recent complaints by some female managers that they are paid less than their male counterparts. In response to these charges, the partners ask their human resources director to record the salaries of female and male managers with equivalent education, work experience, and job performance. A random sample of these pairs of managers is provided in the file attached.

a. Do these data support the claim made by some female managers within the organizations? Report and interpret the p-value.

b. Assuming a 5% significance level, which values of the sample means.


Solution Preview

Please see the attached file.

Annual Salaries of Randomly Selected Pairs of Comparable Male and Female Managers

Pair Female_Salary Male_Salary Hypotheses: H0: mD = 0 vs. HA: mD < 0
1 $100,525 $101,755 Level of Significance: a = 5%
2 $80,922 $80,670 Decision Rule: Reject the null hypothesis if p-value < 0.05
3 $78,475 $79,139
4 $90,093 $90,821 Hypothesis Test: Paired Observations
5 $68,992 $68,524
6 $86,265 $87,001 0.000 hypothesized ...

Solution Summary

The solution randomly selected pairs of salary levels and completes a hypothesis test. The conclcusion is to determine is if female managers are paid less than their male counterparts.