Question

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.

Required:
Calculate the female earnings in percent of the male earnings. How would you test whether or not this difference is statistically significant?

Answer 1

67%

Test for 2 Independent means

Step-by-step explanation:

Given that:

Average Female earning per week in sample = $346.98

Average Male earning per week in sample = $517.70

Female earning in percent of male earning :

(Female earning / male earning) × 100%

(346.98 / 517.70) * 100%

0.6702337 * 100%

67.02%

= 67%

Testing whether or not the difference in weekly earning by males and female can be conducted by testing the difference in sample means of both males and females by taking the two different samples as being independent.

Usually :

Null hypothesis : H0 : m1 - m2 = 0

Alternative hypothesis : H1 : m1 - m2 ≠ 0