Statistics for Data Science and Business Analysis - Practical Example: Hypothesis Testing

The video explores the gender pay gap at a fictitious company, Spark Fortress Incorporated. It uses hypothesis testing to determine if there is a significant difference in salaries based on gender. The analysis shows no overall wage gap, but further segmentation by age reveals a gap favoring males in older employees. The video concludes with a homework assignment to test for racial discrimination.

What is the sample size used in the analysis of Spark Fortress Incorporated?

• 5000 employees

• 174 employees

• 98 employees

• 76 employees

Which statistical test is used to determine if there is a gender-based salary difference?

• Chi-square test

• ANOVA

• T-test for independent samples

• Regression analysis

What was the conclusion of the initial hypothesis test regarding the gender pay gap?

• No significant gender pay gap was found

• There is a significant gender pay gap

• The test was inconclusive

• The test showed a bias towards females

Who is the highest paid employee in Spark Fortress Incorporated?

• The CFO

• The President and CEO, Caroline Bold

• The Head of Marketing

• The Head of HR

What was the result of the segmented analysis for employees over 35?

• No wage gap was found

• A wage gap exists favoring females

• A wage gap exists favoring males

• The analysis was inconclusive

What is a limitation of the analysis mentioned in the video?

• It did not consider age

• It omitted factors like position and ethnicity

• It was based on outdated data

• It only included male employees

What is the homework task given at the end of the video?

• Examine the effect of department on salary

• Analyze the impact of tenure on salary

• Conduct a test for age discrimination

• Investigate racial discrimination in the firm