Project: Two Means

Project: Is There Statistically Significant Evidence to Demonstrate Gender Discrimination in the Paycheck?

Scenario:
Several major corporations have had to pay millions of dollars to settle "gender discrimination" lawsuits. As a result of these rulings, companies are very concerned with the parity of pay of their employees.

Actual Gender Discrimination Lawsuits taken from the Headlines.

Gender Discrimination Class Action Against Morgan Stanley (June 22, 2006)

Boeing to Pay $72.5 Million for Gender Discrimination, (November 14, 2005)

A New Black Eye for Boeing? Internal Documents Suggest Years of Serious Compensation Gaps for Women (Business Week, April 26, 2004)

EEOC announces $47 million agreement in principle to settle claims of class-wide sex bias against Rent-A-Center (March 9, 2002)

Employees in three states file sex-discrimination lawsuits against Boeing (January 16, 2002)

Wal-Mart female workers demand respect and fair treatment (July 16, 2001)

Lawsuits charge CBS with sex discrimination (February 25, 2000)

AT&T settles sex-bias lawsuit for $3.3 million (June 6, 1994)

Project:
Write a report (word processor preferred) testing the following claim:

"The mean pay of the female managers is less than their male counterparts."

I. At the 0.05 level of significance, test whether the following corporation is guilty of
     "gender discrimination" in the manner they pay their employees. The following table
     displays the annual salary of 40 managers (20 male and 20 female). No effort was made
     in pairing the data. Perform the hypothesis tests using the Female and Male data as
     Independent Data
     Note: Remember to hypothesis test (male) = (female) to determine if the
    variances should be pooled or not when testing the means.

II. At the 0.05 level of significance, test whether the following corporation is guilty of
      "gender discrimination" in the manner they pay their employees. The following table
      displays the annual salary of 40 managers (20 male and 20 female). Every effort was
      made in pairing the data (same amount of experience, same responsibilities, etc.).
      Perform the hypothesis tests using the Female and Male data as Dependent Data

Female	Male
$43,800	$44,000
$35,500	$36,000
$39,700	$38,000
$38,000	$42,000
$36,500	$37,000
$33,000	$35,000
$54,000	$56,000
$36,000	$36,000
$54,000	$53,000
$35,500	$36,000
$34,900	$41,000
$36,900	$38,000
$47,800	$50,000
$42,000	$45,500
$30,000	$31,000
$42,000	$41,500
$39,000	$38,500
$42,500	$42,000
$31,000	$31,000
$38,000	$39,500

III. Based on your hypothesis tests
A. Are there grounds for a gender discrimination lawsuit in behalf of the female managers?

B. If you represented management, which approach, independent or dependent, would be the
basis of your defense?

C. If you represented labor, which approach, independent or dependent, would be the basis
of your prosecution?