5. Is there a gender pay gap? The government is interested in investigating this issue and you...
Question:
5. Is there a gender pay gap? The government is interested in investigating this issue and you have been hired to carry out the following investigations.
a. Compute and plot two 99% confidence intervals for men and women's average weekly wages. Comment on your findings. Is there any evidence of a gender pay gap?
b. The government believes that both men and women earn the UK average weekly wage of 650. Many gender equality organisations do not believe this is true and they believe that men earn more than this amount while women earn less. Test these two hypotheses. Comment on your findings.
c. Some members of the government actually believe that there is no gender pay gap at all. Test this hypothesis by computing a test for two population means and comment on the results of your investigation.
d. After completing the analyses in a) to c), an economist approaches you and suggests that your analysis could be improved and made more accurate. How do you think your analysis could be improved? Suggest a possible improvement and repeat the investigations a) to c). Comment on your new findings. Does your conclusions about the existence of a gender pay gap change?
Spreadsheet to data needed is below:
https://docs.google.com/spreadsheets/d/1EZllKg7ed81isRDJMvrkhCorblqK_V-yyL9rtcfpQTM/edit?usp=sharing