Problem 2 [10 Pts]

Recently, the U.S. Women's Soccer team has argued that female soccer players are paid less than their male

counterparts (see a sample article here). Assume that you are currently investigating the claim that female

soccer players are experiencing gender discrimination (note that discrimination is usually tested with respect

to two groups but since we have not done this yet in this class, I have had to oversimplify this question).

Assume that the average income of all soccer players is $1 with a standard deviation of 0.15 (15 cents). You

take a sample of 50 female soccer players and find that their average income is $0.05. Answer the following

questions:

(a)(2 pts) State the null and alternative hypothesis.

(b)(2 pts) Calculate the test statistic.

(c)(2 pts) Find the critical value when

alpha = 0.05.

(d)(4 pts) Based on your answers in parts (b) and (c), what is your conclusion on discrimination in soccer?

Discuss the evidence and what it tells you about the likelihood of discrimination.

link to article https://www.espn.com/sports/soccer/story/_/id/27175927/us-women-soccer-equal-pay-fight-latest-next