# Bus308 2018 homework week 2

Week 2: Identifying Significant Differences – part 1

To Ensure full credit for each question, you need to show how you got your results. This involves either showing where the data you used is located

or showing the excel formula in each cell. Be sure to copy the appropriate data columns from the data tab to the right for your use this week.

As with our examination of compa-ratio in the lecture, the first question we have about salary between the genders involves equality – are they the same or different?

What we do, depends upon our findings.

1 As with the compa-ratio lecture example, we want to examine salary variation within the groups – are they equal? Use Cell K10 for the Excel test outcome location.

a What is the data input ranged used for this question:

b Which is needed for this question: a one- or two-tail hypothesis statement and test ?

Answer:

Why:

c. Step 1: Ho:

Ha:

Step 2: Significance (Alpha):

Step 3: Test Statistic and test:

Why this test?

Step 4: Decision rule:

Step 5: Conduct the test – place test function in cell k10

Step 6: Conclusion and Interpretation

What is the p-value:

What is your decision: REJ or NOT reject the null?

Why?

What is your conclusion about the variance in the population for male and female salaries?

2 Once we know about variance quality, we can move on to means: Are male and female average salaries equal? Use Cell K35 for the Excel test outcome location.

(Regardless of the outcome of the above F-test, assume equal variances for this test.)

a What is the data input ranged used for this question:

b Does this question need a one or two-tail hypothesis statement and test?

Why:

c. Step 1: Ho:

Ha:

Step 2: Significance (Alpha):

Step 3: Test Statistic and test:

Why this test?

Step 4: Decision rule:

Step 5: Conduct the test – place test function in cell K35

Step 6: Conclusion and Interpretation

What is the p-value:

What is your decision: REJ or NOT reject the null?

Why?

What is your conclusion about the means in the population for male and female salaries?

3 Education is often a factor in pay differences.

Do employees with an advanced degree (degree = 1) have higher average salaries? Use Cell K60 for the Excel test outcome location.

Note: assume equal variance for the salaries in each degree for this question.

a What is the data input ranged used for this question:

b Does this question need a one or two-tail hypothesis statement and test?

Why:

c. Step 1: Ho:

Ha:

Step 2: Significance (Alpha):

Step 3: Test Statistic and test:

Why this test?

Step 4: Decision rule:

Step 5: Conduct the test – place test function in cell K60

Step 6: Conclusion and Interpretation

What is the p-value:

Is the t value in the t-distribution tail indicated by the arrow in the Ha claim?

What is your decision: REJ or NOT reject the null?

Why?

What is your conclusion about the impact of education on average salaries?

4 Considering both the compa-ratio information from the lectures and your salary information, what conclusions can you reach about equal pay for equal work?

Why – what statistical results support this conclusion?