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Statistical Concepts

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Submitted By merdemt
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Executive Summary
We find that there are some relationships with gender and salary in that firm referring to employee database (in Appendix ) because it is obvious that male employees' salary differ from female employees' salary. In order to confirm this doubt, it seems necessary to do some statistical analyses including a two-sample t test of male salaries against female salaries and a multiple regression to explain salary using age ,experience, and an indicator variable for gender . Through these statistical analyses, we can see that the discrimination truly exists in that firm and what affects the result of difference in salary between males and females.

Introduction
Just looking at the employee database, we can find easily that the average of females' salary is lower than average of males' salary by $9,000. However gender seems not be the only factor can affect the final result , some other things also looks important such as age , experience and training level. So our purpose is to indentify if gender is an important factor for final result and to exclude influences by other factors. Therefore, the result is as we expected, we are sure that the discrimination truly exists in that firm.

Analysis and Methods
This section begins with summaries of males' salary and females' salary. There are 28 females with average salary $39635.46 and 43 males with average salary $48726.84, From the histograms in Figure (a) and Box plot(b),we can see a big difference here and average difference is$9091 .

Figure (a) Figure (b)

Furthermore, we need a two-sample t test to identify if females' salary is significant lower than males'. Assuming null hypothesis is

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