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Hypothesis Testing: Double Counting

A company has been accused of double counting such that if race and gender are related there is double counting.

Caucasian African American All other

Male 72 48 28
Female 24 24 24

Test the hypothesis at the .05 level of significance that gender makes a difference in the ethnicity of the person hired.
Give the computed values of the test statistic.
State the critical value or the p-value.
Explain the decision.

Test a hypothesis that there is no difference in the average wage paid based on gender. Assume that the populations are independent and normal. Do not assume that the populations have the same standard deviations. Show all parts of hypothesis testing and discuss type 1 and 2 errors.

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Solution Summary

This solution performs a hypothesis test on a company that has been accused of double counting.