3.12 To investigate possible gender discrimination in a firm, a sample of 120 men and 150 women with similar job descriptions are selected at random. A summary of the resulting monthly salaries follows:

a. What do the data suggest about wage differences in the firm? Do they represent statistically significant evidence that average wages of men and women are different? (To answer this question, first state the null and alternative hypotheses; second, compute the relevant t-statistic;
third, compute the p-value associated with the t-statistic; and finally, use the p-value to answer the question.)

b. Does the data suggest that the firm is guilty of gender discrimination in its compensation policies? Explain.

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Average Salary Standard Deviation n Men Women $8,200 $7,900 $450 120 $520 150