Hypothesis Testing

Hypothesis Testing Part 1 a.

There are many calls for equality in the workplace, including equality for salaries and promotions for both men and women. It is always thought that men have a higher salary than women. A similar concept applies to the top of the employee hierarchy, that is, the management. To determine whether this is true, a study was conducted to evaluate whether the mean salary of male managers is greater than that of the female managers.

b. Is the salary of male managers greater than that of female managers? c. The quantitative variable in the study is the monthly salary in dollars for both male and female managers.

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HYPOTHESIS 1

TESTING

d. If H0 is rejected, I will conclude that there is no difference amount of salary between male and female managers in the workplace. However, if H 0 is not rejected, I will conclude that there is a statistically significant difference between the salaries of males and female managers in the workplace, with males having higher salaries than female managers. e. H0: µ1=µ2 H1: µ1>µ2 f. Where µ1 is the mean salary for male managers, and µ2 is the mean salary for female managers. g. The null hypothesis: The mean salary for male and female managers is the same: The alternative hypothesis: The mean salary of male managers is higher than that of female managers.

Part 2 a. My target population or my population of interest is both male and female managers in Washington DC. The sample population of interest is 1000 managers. b. I will use the stratified sampling method where the population is divided into strata that allow for random selection of members from each group. The stratified sampling method uses the formula: ni =

n N N i

Where; ni is the sample size of managers in every industry such as the retail industry.

HYPOTHESIS 2

TESTING

n is the total Number of managers in Washington DC N is the Population size N iis the total number of managers in a specific industry

The formula will be used to determine whether the sample size is would give statistically significant results, and then interviews will be conducted on a random basis for the number of people chosen in every industry. c. n= 100 managers. d. I will use an alpha level of 0.05. This alpha value has an associated z-value of 1.645 for the one-tailed test. The reason why I chose this value is that my sample size was greater than 30, therefore, I can assume that the data I will obtain from the research will be normally distributed. e. If the test statistic is greater than the z-value, then I will reject the null hypothesis.

Part 3 a. My test statistic is 2.33 b. My p-value, which corresponds to 2.33, is 0.9901 c. Since the alpha value is greater than the test statistic, then I will reject the null hypothesis. d. Since the computed p-value is greater than the alpha level of significance, I will, therefore, reject the null hypothesis. e. Since my decision rule is to reject the null hypothesis that the mean salary of male managers is equal to that of the female managers, then more attention should be paid to ensuring that female managers earn the same salary with male managers in every industry since they all play the same role. Moreover, according to Bishu & Alkadry (2016), studies have shown that female managers are better at management positions hence more reason

HYPOTHESIS 3 to increase their salaries.

TESTING

HYPOTHESIS 4

TESTING Reference

Bishu, S., & Alkadry, M. (2016). A systematic review of the gender pay gap and factors that predict it. Administration & Society, 49(1), 65-104. doi: 10.1177/0095399716636928