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1. At this point we know the following about male and female salaries.

a. Male and female overall average salaries are not equal in the population.
b. Male and female overall average compas are equal in the population, but males are a bit more spread out.
c. The male and female salary range are almost the same, as is their age and service.
d.  Average performance ratings per gender are equal.

Let's look at some other factors that might influence pay - education(degree) and performance ratings.

Last week, we found that average performance ratings do not differ between males and females in the population.

Now we need to see if they differ among the grades. Is the average performace rating the same for all grades?

(Assume variances are equal across the grades for this ANOVA.)

You can use these columns to place grade Perf Ratings if desired.



A B C D E F
Null Hypothesis:






Alt. Hypothesis:






Interpretation:

What is the p-value:

Is P-value < 0.05?

Do we REJ or Not reject the null?

If  the null hypothesis was rejected, what is the effect size value (eta squared):

Meaning of effect size measure:

What does that decision mean in terms of our equal pay question:

2 While it appears that average salaries per each grade differ, we need to test this assumption.

 Is the average salary the same for each of the grade levels? (Assume equal variance, and use the analysis toolpak function ANOVA.)  
Use the input table to the right to list salaries under each grade level.

If desired, place salaries per grade in these columns

What is the p-value:

Is P-value < 0.05?

Do you reject or not reject the null hypothesis:

If  the null hypothesis was rejected, what is the effect size value (eta squared):

Meaning of effect size measure:

Interpretation:

The table and analysis below demonstrate a 2-way ANOVA with replication.  Please interpret the results.


BA MA
Ho: Average compas by gender are equal






Male 1.017 1.157
Ha: Average compas by gender are not equal






0.87 0.979
Ho: Average compas are equal for each degree






1.052 1.134
Ha: Average compas are not equal for each degree






1.175 1.149
Ho: Interaction is not significant








1.043 1.043
Ha: Interaction is significant








1.074 1.134












1.02 1
Perform analysis:









0.903 1.122












0.982 0.903
Anova: Two-Factor With Replication







1.086 1.052












1.075 1.14
SUMMARY BA MA Total







1.052 1.087
Male      






Female 1.096 1.05
Count 12 12 24







1.025 1.161
Sum 12.35 12.9 25.25







1 1.096
Average 1.029 1.075 1.052







0.956 1
Variance 0.007 0.007 0.007







1 1.041












1.043 1.043
Female      







1.043 1.119
Count 12 12 24







1.21 1.043
Sum 12.79 12.79 25.58







1.187 1
Average 1.066 1.066 1.066







1.043 0.956
Variance 0.006 0.004 0.005







1.043 1.129












1.145 1.149
Total      










Count 24 24











Sum 25.14 25.69











Average 1.048 1.07











Variance 0.006 0.005









































ANOVA













Source of Variation SS df MS F P-value F crit







Sample 0.002 1 0.002 0.383 0.539 4.062   (This is the row variable or gender.)




Columns 0.006 1 0.006 1.06 0.309 4.062   (This is the column variable or Degree.)




Interaction 0.006 1 0.006 1.091 0.302 4.062







Within 0.259 44 0.006

























Total 0.274 47        



Interpretation:

For Ho: Average compas by gender are equal Ha: Average compas by gender are not equal

What is the p-value:

Is P-value < 0.05?

Do you reject or not reject the null hypothesis:

If  the null hypothesis was rejected, what is the effect size value (eta squared):

Meaning of effect size measure:

For Ho: Average compas are equal for all degrees   Ha: Average compas are not equal for all grades

What is the p-value:

Is P-value < 0.05?

Do you reject or not reject the null hypothesis:

If  the null hypothesis was rejected, what is the effect size value (eta squared):

Meaning of effect size measure:

For: Ho: Interaction is not significant Ha: Interaction is significant

What is the p-value:

Is P-value < 0.05?

Do you reject or not reject the null hypothesis:

If  the null hypothesis was rejected, what is the effect size value (eta squared):

Meaning of effect size measure:

What do these decisions mean in terms of our equal pay question:

4 Many companies consider the grade midpoint to be the "market rate" - what is needed to hire a new employee.

Does the company, on average, pay its existing employees at or above the market rate?

What is the p-value:

Is P-value < 0.05?

What else needs to be checked on a 1-tail in order to reject the null?

Do we REJ or Not reject the null?

If  the null hypothesis was rejected, what is the effect size value: NA

Meaning of effect size measure: NA

Interpretation:

5. Using the results up thru this week, what are your conclusions about gender equal pay for equal work at this point?

Microeconomics, Economics

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