After complaints about gender discrimination regarding bonus incentive pay, a large multinational firm collected data on bonuses awarded during the previous year (% of base pay). Human Resources (HR) randomly sampled male and female managers from three different levels: senior, middle, and supervisory. The two-way ANOVA results are presented here.

a) Is this an experiment or an observational study?
b) State the hypotheses.
c) Given the small P-value associated with the gender and that the mean annual bonus percent for females is 12.5% compared to 14.5% for males, HR concludes that gender discrimination exists. Do you agree? Explain.

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Sum of Mean Source Gender DF Squares Square F-ratio P-value 1 32.033 32.033 9.76 0.005 Level 2 466.200 233.100 70.99 <0.0001 Interaction 2 20.467 10.233 3.12 0.063 Error Total 24 78.800 3.283 29 597.500