In article <[EMAIL PROTECTED]>,
Dennis Roberts <[EMAIL PROTECTED]> 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

If the company has a policy of paying all employees in this position the
same salary, then, of course, if a woman discovers that she's paid $1000
less than the men, she has cause for complaint.

This is obvious, and is presumably not the issue being discussed.

Instead, we must assume that the company has a policy of paying these 
employees different amounts, based on merit.  If we further assume that
there is no reason why merit should be related to sex, we would expect
that the average salary of men and women would be the same, IF THERE
WERE NO CHANCE VARIATION.

But of course there is chance variation.  Even if men and women are
equally meritorious on averge, the company may happen to have hired
more good men than good women.  To take the extreme case, suppose the
company has only two employees, one male and one female.  The male is
paid $70,000.  The female is paid $65,000.  An obvious case of
discrimination?  Not if pay is supposed to be merit based and we have
no knowledge of the degree of merit of these two employees.

   Radford Neal

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Radford M. Neal                                       [EMAIL PROTECTED]
Dept. of Statistics and Dept. of Computer Science [EMAIL PROTECTED]
University of Toronto                     http://www.cs.utoronto.ca/~radford
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