Hi

On 3 Apr 2003, Dennis Roberts wrote:
> the fact is in this case ... there is either a difference in salaries (for 
> which they have the data) or not
> 
> let's say for argument ... that there is a difference in favor of males ... 
> of $1000 a year ... but, because there is wide variation within the male 
> and female categories (because of years of experience) ... a t test fails 
> to reject the null
> 
> what is the data analyst going to say ... that there is no difference ... 
> ??? how can you use the t test RETENTION of the null to persuade the 
> females that the $1000 dollars is just a figment of their imagination?
> 
> we know there is a difference ... this issue then is ... is the difference 
> important ENOUGH that the company/organization ... should do something 
> about it? a t test is NOT going to help resolve that problem
> 
> therefore ... i claim in this kind of  a situation ... the FACTS are known 
> and ... an inferential test like a t test is completely inappropriate

The null hypothesis being tested is exactly the same as for other
uses of the t-test, namely whether the observed difference could
have occurred by chance, rather than be some systematic factor.  
If a difference of $1,000 being means is observed, we still need
to know whether that is a large or small difference given the
variability among individuals within groups (if large, perhaps
for the kinds of systematic reasons that Radford mentioned).

That this is a logical (and responsible) thing to do can be
appreciated by recasting this as a randomization test.  If the
observed salaries were randomly assigned to males and females,
what is the probability that the observed difference or larger
would be observed.  My understanding is that randomization and
parametric tests generally converge on a common answer to this
question.  I would be interested in references either way on this
point.

As another related argument for the validity of statistical
tests, consider a difference of 1$.  That is a real difference
for the population, but does it represent discrimination?  Most
of us would agree that a difference this large could readily
occur just by chance.  But how large must a difference be to be
treated as a "real" difference ... a statistical test will
address this question.

In doing the statistical test, it would probably be appropriate
to compare groups of males and females that are roughly equal
along relevant dimensions.  Throwing the President's salary of
$250,000, for example, is likely to inflate the denominator and
make it difficult to achieve significance.

Best wishes
Jim

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James M. Clark                          (204) 786-9757
Department of Psychology                (204) 774-4134 Fax
University of Winnipeg                  4L05D
Winnipeg, Manitoba  R3B 2E9             [EMAIL PROTECTED]
CANADA                                  http://www.uwinnipeg.ca/~clark
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