Silicon Valley tech companies are under pressure to increase diversity as most of their employees are white

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Silicon Valley tech companies are under pressure to increase diversity as most of their employees are white and Asian men (Bloomberg, August 16, 2017). Black and Hispanic people, especially women, are grossly underrepresented. In order to analyze if the lack of diversity is influenced by a lack of diversity in the founding leadership team, data are collected on the percentage of white and Asian men (Majority Male) in Silicon Valley tech companies and whether the founding members included a woman (Female) and/or a Black or Hispanic man (Minority Male). A portion of the data is shown in the accompanying table.


a. Estimate and interpret the effect of Female, Minority Male, and the interaction between Female and Minority Male. 

b. Predict the percentage of White and Asian men if the founding members included a woman but no Black or Hispanic men. Repeat the analysis if the founding members included a woman and a Hispanic man.

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Business Analytics Communicating With Numbers

ISBN: 9781260785005

1st Edition

Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen

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