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Using the Salary Data Set what is the probability of randomly selecting one individual (male or female) with a current annual salary of over $55,000?

You are a consultant working for Kaplan Consulting. The Director of Human Resources for a multi-national company has requested help in investigating a pay discrimination complaint brought by a female executive. The company provided the data in the Salary Data Set. Use PHStat and the appropriate t test, to investigate the claim of pay discrimination in the current salaries. Be sure to include:

1. Your null and alternative hypotheses;

2. The level of alpha you elect to use and why in terms of Type I or Type II error;

3. Show the output from the analysis;

4. Your interpretation of the results; and

5. A written statement to the director of Human Resources as to whether they should be concerned about the complaint.

Gender (1=male, 2=female) Education (years) Beginning Salary Current Salary Previous Experience (months)
1 8 $10,200 $27,100 0
1 8 $11,550 $31,300 24
2 8 $12,000 $28,350 26
2 8 $12,750 $24,150 96
2 8 $12,000 $21,150 159
1 8 $13,200 $31,900 190
1 8 $13,500 $21,600 228
1 8 $16,050 $36,250 264
2 8 $12,450 $21,750 318
1 8 $18,750 $35,200 344
2 8 $15,000 $30,750 451
1 12 $12,750 $31,900 0
1 12 $11,250 $44,900 0
1 12 $11,250 $23,400 0
1 12 $10,950 $28,150 0
2 12 $11,250 $20,400 0
2 12 $11,250 $20,700 2
2 12 $11,250 $21,300 3
2 12 $11,250 $28,500 4
2 12 $11,250 $19,650 5
2 12 $11,250 $22,350 5
1 12 $16,500 $42,200 7
2 12 $10,950 $24,300 8
2 12 $11,250 $19,950 8
2 12 $10,950 $22,050 9
2 12 $11,400 $25,500 9
1 12 $12,000 $45,500 11
2 12 $13,050 $26,550 11
2 12 $12,000 $27,750 11
2 12 $10,950 $19,650 11
2 12 $11,250 $23,100 13
1 12 $12,900 $26,700 18
1 12 $11,250 $23,400 18
1 12 $15,000 $40,800 24
1 12 $13,500 $29,700 26
1 12 $13,500 $27,900 32
2 12 $15,750 $33,540 47
2 12 $15,000 $30,750 56
2 12 $13,500 $27,300 66
2 12 $16,500 $35,700 72
1 12 $15,000 $37,500 75
2 12 $15,750 $30,270 80
2 12 $15,750 $24,450 87
1 12 $14,250 $24,450 117
1 12 $15,000 $35,000 121
1 12 $15,750 $37,650 132
2 12 $13,950 $19,650 133
1 12 $15,000 $25,800 143
1 12 $11,250 $28,500 154
2 12 $15,750 $31,200 155
2 12 $12,000 $20,850 163
2 12 $10,200 $16,350 163
2 12 $12,000 $23,100 228
1 12 $13,500 $44,000 244
2 12 $33,750 $49,400 272
2 12 $12,000 $21,450 381
1 12 $15,750 $30,600 460
2 15 $12,750 $28,200 19
2 15 $13,950 $22,950 22
2 15 $16,500 $29,400 24
2 15 $15,000 $30,900 25
1 15 $14,250 $27,750 34
2 15 $14,250 $46,000 48
2 15 $15,000 $35,250 54
2 15 $15,750 $30,300 55
1 15 $15,000 $26,700 56
1 15 $14,250 $34,650 61
2 15 $15,000 $32,400 64
2 15 $13,500 $32,100 67
2 15 $16,500 $40,350 80
2 15 $16,500 $28,050 84
2 15 $20,550 $49,000 86
2 15 $18,750 $26,000 114
1 15 $12,750 $27,900 115
1 15 $13,500 $23,850 122
2 15 $16,800 $35,100 137
2 15 $21,000 $45,000 138
1 15 $27,000 $57,000 144
2 15 $13,500 $23,700 359
1 16 $17,250 $34,500 3
2 16 $30,000 $56,750 15
2 16 $21,750 $70,000 19
1 16 $19,500 $52,650 20
2 16 $18,750 $40,200 36
1 16 $20,250 $34,950 55
1 16 $23,250 $45,625 60
2 16 $27,510 $67,500 70
2 16 $12,750 $25,050 123
2 16 $26,250 $32,300 126
1 16 $44,100 $110,500 128
2 16 $16,500 $30,300 143
1 16 $47,490 $66,000 150
2 16 $60,000 $79,500 150
2 17 $32,490 $60,000 17
1 17 $12,750 $29,100 375
1 18 $32,490 $68,125 29
1 19 $33,000 $61,250 9
1 19 $19,500 $36,000 21
2 19 $36,750 $51,875 199
2 19 $27,480 $52,125 221

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