The gender pay gap reveals how much women are paid compared to men. The uncontrolled (or unadjusted) gender pay gap is calculated by taking the ratio median earnings of all women to all men, regardless of industry, skill level, education or any other type of diverse demographic that can affect an individual's income. The controlled pay gap is hypothetical, and shares what women could earn compared to men when all compensable factors are accounted for such as job title, education, experience, industry, job level, and hours worked. The table below shows the difference between the current "uncontrolled" average gender pay gap against a "controlled" average gender pay gap. These comparisons are against the average $1.00 earned by white men. Uncontrolled Pay Gap Controlled Pay Gap Asian women Native Hawaiian and other Pacific Islander women American Indian and Alaska Native women White women Hispanic and Latine women Black and African American women $0.97 $0.75 $0.70 $0.82 $0.77 $0.78 $1.02 $1 $0.98 $1 $0.98 $0.98 a. Conduct a hypothesis test at the 1% significance level to test the claim that the average difference in the pay gap decreases when controlled.
The gender pay gap reveals how much women are paid compared to men. The uncontrolled (or unadjusted) gender pay gap is calculated by taking the ratio median earnings of all women to all men, regardless of industry, skill level, education or any other type of diverse demographic that can affect an individual's income. The controlled pay gap is hypothetical, and shares what women could earn compared to men when all compensable factors are accounted for such as job title, education, experience, industry, job level, and hours worked. The table below shows the difference between the current "uncontrolled" average gender pay gap against a "controlled" average gender pay gap. These comparisons are against the average $1.00 earned by white men. Uncontrolled Pay Gap Controlled Pay Gap Asian women Native Hawaiian and other Pacific Islander women American Indian and Alaska Native women White women Hispanic and Latine women Black and African American women $0.97 $0.75 $0.70 $0.82 $0.77 $0.78 $1.02 $1 $0.98 $1 $0.98 $0.98 a. Conduct a hypothesis test at the 1% significance level to test the claim that the average difference in the pay gap decreases when controlled.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 8SGR
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Transcribed Image Text:**Understanding the Gender Pay Gap**
The gender pay gap reveals the disparity in earnings between women and men. The uncontrolled, or unadjusted, gender pay gap is determined by comparing the median earnings of all women to all men. This calculation does not factor in industry, skill level, education, or diverse demographics that can impact income. Conversely, the controlled pay gap considers these variables—such as job title, education, experience, industry, job level, and hours worked—hypothetically showing what women could earn compared to men if all compensable factors were equal.
**Table: Uncontrolled vs. Controlled Gender Pay Gap**
This table illustrates the differences between the current "uncontrolled" average gender pay gap and a "controlled" average pay gap. Both are compared to the $1.00 average earnings of white men.
| Group | Uncontrolled Pay Gap | Controlled Pay Gap |
|-------------------------------------------------|----------------------|--------------------|
| Asian women | $0.97 | $1.02 |
| Native Hawaiian and other Pacific Islander women| $0.75 | $1.00 |
| American Indian and Alaska Native women | $0.70 | $0.98 |
| White women | $0.82 | $1.00 |
| Hispanic and Latine women | $0.77 | $0.98 |
| Black and African American women | $0.78 | $0.98 |
**Analysis Task:**
Conduct a hypothesis test at the 1% significance level to investigate if the average difference in the pay gap decreases when controlled.
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