| Week 4 | Confidence Intervals and Chi Square (Chs 11 - 12) |
| For questions 3 and 4 below, be sure to list the null and alternate hypothesis statements. Use .05 for your significance level in making your decisions. |
| For full credit, you need to also show the statistical outcomes - either the Excel test result or the calculations you performed. |
| 1 | Using our sample data, construct a 95% confidence interval for the population's mean salary for each gender. |
| | Interpret the results. How do they compare with the findings in the week 2 one sample t-test outcomes (Question 1)? |
| | | Mean | St error | t value | | Low | to | High |
| | Males | 52 | 3.5552777669 | 2.0638985473 | | 44.66 | | 59.34 |
| | Females | 38 | 3.6587793957 | 2.0638985473 | | 30.45 | | 45.55 |
| | <Reminder: standard error is the sample standard deviation divided by the square root of the sample size.> |
| Interpretation: | If repeated observations are taken, the mean salary of male employees is expected to lie within 44.66 to 59.34 thousands about 95% of the time. |
| | If repeated observations are taken, the mean salary of female employees is expected to lie within 30.45 to 45.55 thousands about 95% of the time. |
| | As per our previous findings in week 2 one sample t-test outcomes, the mean salary of the male employees is 52 thousands and there is no evidence to suggest that the mean salary of the male employees is significantly different from the mean salary of the population, which is 45 thousand. The mean salary of the female employees is 38 thousands and there is no evidence to suggest that the mean salary of the female employees is significantly different from the mean salary of the popululation. |
| | The 95% confidence intervals for the salaries of the male and the female employees both contain the population mean salary of 45 thousand. |
| | This is in accordance with our previous findings that the mean salary of the male and female employees are not significantly different from the mean salary of the popululation. |
| 2 | Using our sample data, construct a 95% confidence interval for the mean salary difference between the genders in the population. |
| | How does this compare to the findings in week 2, question 2? |
| | Difference | St Err. | T value | | | Low | to | High |
| | 14 | 5.1016337253 | 2.0106347219 | | | 3.7424780935 | | 24.2575219065 |
| | | | | Yes/No |
| | Can the means be equal? | | | No | Why? | The confidence interval for the difference of means does not contain 0. |
| | How does this compare to the week 2, question 2 result (2 sampe t-test)? |
| | As the confidence interval for the population's mean salary difference for male and female employees does not include 0, we can conclude that there is a significant difference between the means at 95% level of confidence. |
| | This is in accordance with our previous findings of week 2 two sample t-test outcome that the mean salary of the male employees is significantly different from the mean salary of the female employees, at 95% level of confidence. |
| a. | Why is using a two sample tool (t-test, confidence interval) a better choice than using 2 one-sample techniques when comparing two samples? |
| | It reduces the number of errors due to approximations. |
| | | | | | | | | | | | | | | | Females |
| 3 | We found last week that the degrees compa values within the population. | | | | | | | | | | | | | | Count of Degree | Column Labels |
| | do not impact compa rates. This does not mean that degrees are distributed evenly across the grades and genders. | | | | | | | | | | | | | | Row Labels | A | B | C | D | E | F | Grand Total |
| | Do males and females have athe same distribution of degrees by grade? | | | | | | | | | | | | | | 0 | 7 | 1 | 1 | 2 | 1 | | 12 |
| | (Note: while technically the sample size might not be large enough to perform this test, ignore this limitation for this exercise.) | | | | | | | | | | | | | | 1 | 5 | 3 | 1 | 1 | 1 | 2 | 13 |
| | | | | | | | | | | | | | | | Grand Total | 12 | 4 | 2 | 3 | 2 | 2 | 25 |
| | What are the hypothesis statements: |
| | Ho: | Males and females have the same distribution of degrees by grade. |
| | Ha: | Males and females do not have the same distribution of degrees by grade. | | | | | | | | | | | | | Count of Degree | Column Labels |
| Note: You can either use the Excel Chi-related functions or do the calculations manually. | | | | | | | | | | | | | | | Row Labels | A | B | C | D | E | F | Grand Total |
| | Data input tables - graduate degrees by gender and grade level | | | | | | | | | | | | | | 0 | 2 | 2 | 2 | 1 | 5 | 1 | 13 |
| OBSERVED | A | B | C | D | E | F | Total | | Do manual calculations per cell here (if desired) | | | | | | 1 | 1 | 1 | 1 | 1 | 5 | 3 | 12 |
| M Grad | 1 | 1 | 1 | 1 | 5 | 3 | 12 | | A | B | C | D | E | F | Grand Total | 3 | 3 | 3 | 2 | 10 | 4 | 25 |
| Fem Grad | 5 | 3 | 1 | 1 | 1 | 2 | 13 | M Grad | 1.8778 | 0.2752 | 0.0333 | 0.0333 | 1.5606 | 1.6900 |
| Male Und | 2 | 2 | 2 | 1 | 5 | 1 | 13 | Fem Grad | 0.3103 | 0.7651 | 0.0692 | 0.0692 | 1.4405 | 0.1241 |
| Female Und | 7 | 1 | 1 | 2 | 1 | 0 | 12 | Male Und | 0.9256 | 0.0178 | 0.3769 | 0.0692 | 1.1328 | 0.2010 |
| Total | 15 | 7 | 5 | 5 | 12 | 6 | 50 | Female Und | 3.2111 | 0.2752 | 0.0333 | 0.5333 | 1.2272 | 1.4400 |
| | | | | | | | | | Sum = | 17.6923076923 |
| EXPECTED |
| M Grad | 3.6 | 1.68 | 1.2 | 1.2 | 2.88 | 1.44 | | For this exercise - ignore the requirement for a correction |
| Fem Grad | 3.9 | 1.82 | 1.3 | 1.3 | 3.12 | 1.56 | | for expected values less than 5. |
| Male Und | 3.9 | 1.82 | 1.3 | 1.3 | 3.12 | 1.56 |
| Female Und | 3.6 | 1.68 | 1.2 | 1.2 | 2.88 | 1.44 |
| Interpretation: |
| | | | | What is the value of the chi square statistic: | 17.6923076923 |
| | | | | What is the p-value associated with this value: | 0.2791871758 |
| | | | | Is the p-value <0.05? | No |
| | | | | Do you reject or not reject the null hypothesis: | We do not reject the null hypothesis. |
| | | | | If you rejected the null, what is the Cramer's V correlation: | Not Applicable |
| | | | | What does this correlation mean? | Not Applicable |
| | | | | What does this decision mean for our equal pay question: | There is no evidence to suggest that male and female employees have different distribution of degrees by grade, at significance level of 0.05. |
| 4 | Based on our sample data, can we conclude that males and females are distributed across grades in a similar pattern |
| | within the population? |
| | What are the hypothesis statements: | | | | | | | | | | | | | | Count of Gender1 | Column Labels |
| | Ho: | Males and females have same distribution across grades. | | | | | | | | | | | | | Row Labels | A | B | C | D | E | F | Grand Total |
| | Ha: | Males and females have different distribution across grades. | | | | | | | | | | | | | F | 12 | 4 | 2 | 3 | 2 | 2 | 25 |
| | | | | | | | | | | | | | | | M | 3 | 3 | 3 | 2 | 10 | 4 | 25 |
| | | | | | | | | | | Do manual calculations per cell here (if desired) | | | | | Grand Total | 15 | 7 | 5 | 5 | 12 | 6 | 50 |
| | | A | B | C | D | E | F | Total | | A | B | C | D | E |
| | OBS COUNT - m | 3 | 3 | 3 | 2 | 10 | 4 | 25 | M | 2.7000 | 0.0714 | 0.1000 | 0.1000 | 2.6667 |
| | OBS COUNT - f | 12 | 4 | 2 | 3 | 2 | 2 | 25 | F | 2.7000 | 0.0714 | 0.1000 | 0.1000 | 2.6667 |
| | Total | 15 | 7 | 5 | 5 | 12 | 6 | 50 |
| | | | | | | | | | Sum = | 11.2762 |
| | EXPECTED | 7.5 | 3.5 | 2.5 | 2.5 | 6 | 3 |
| | | 7.5 | 3.5 | 2.5 | 2.5 | 6 | 3 |
| | | | | What is the value of the chi square statistic: | 11.2762 |
| | | | | What is the p-value associated with this value: | 0.0461707397 |
| | | | | Is the p-value <0.05? | Yes |
| | | | | Do you reject or not reject the null hypothesis: | We reject the null hypothesis. |
| | | | | If you rejected the null, what is the Phi correlation: | 0.96937224 |
| | | | | What does this correlation mean? | The extent of relationship between gender and grades is strong. |
| | | | | What does this decision mean for our equal pay question: | Males and females have different distribution across grades, and this might be accountable for the difference in the mean salaries of males and females. |
| 5. How do you interpret these results in light of our question about equal pay for equal work? |
| | The mean salaries of males are significantly higher that the mean salaries of females, at significance level of 0.05. |
| | The distribution of males and females across grades are also significantly different, at significance level of 0.05. |
| | This difference might be the underlying factor for the difference in the mean salaries of males and females. |