hypothesis testing , this is the example, The company has enjoyed
success, and has grown to the current staff of 26 people.
There is a perception/rumor in the company that the average pay rate for males is different than the
average pay rate for females. It is usually a better management practice to believe the data rather
than to believe the “hype.” Perform a statistical test at the 95% confidence level to see if there is
really a significant difference. If there is no significant difference, then show that with a full set of
calculations. If there is a significant difference, explain why this might be so. A significant
difference may be true, but not indicative of any form of institutional discrimination.
a. State the null hypothesis.
b. State the alternative hypothesis.
c. State the significance level.
d. Perform the calculations.
We do not do your homework for you. Although it might take more effort to do the work on your own, you will profit more from your effort. We will be happy to evaluate your work though.
However, I will start you out.
Ho: male = female
Ha: male ≠ female
or if you assume that women get less (as is typical in many companies):
Ha: male > female