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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. (c) 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. (d) A peer suggests that this is consistent with the idea that there is discrimination against females in the labor market. What is your response?

User Pandorz
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Final answer:

The female earnings in percent of the male earnings is 66.98%. Two approaches to test the statistical significance of this difference are hypothesis testing and confidence intervals. To determine if discrimination is the cause of the difference, further analysis is needed.

Step-by-step explanation:

To calculate the female earnings in percent of the male earnings, we need to divide the female earnings by the male earnings and multiply by 100.

In this case, the female earnings are $346.98 and the male earnings are $517.70.

Therefore, the female earnings in percent of the male earnings can be calculated as:

female earnings in percent of male earnings = (female earnings / male earnings) * 100

The result is (346.98 / 517.70) * 100 = 66.98%

To test whether or not this difference is statistically significant, we can use two approaches: hypothesis testing and confidence intervals.

In hypothesis testing, we can set up a null hypothesis that states there is no difference in the earnings between males and females, and an alternative hypothesis that states there is a difference. We can then perform a statistical test, such as a t-test or a chi-square test, to determine if there is enough evidence to reject the null hypothesis.

In confidence intervals, we can calculate a confidence interval for the difference in earnings between males and females.

If the confidence interval does not include zero, then we can conclude that there is a statistically significant difference.

In response to the peer who suggests that this is consistent with the idea of discrimination against females in the labor market, we can say that the difference in earnings does indicate a gender disparity.

However, to determine if discrimination is the cause, further analysis would be needed to consider factors such as education, job type, and experience.


User Sunshinekitty
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