To determine if there is gender and/or race discrimination in car buying, Ian Ayres put together a

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To determine if there is gender and/or race discrimination in car buying, Ian Ayres put together a team of fifteen white males, five white females, four black males, and seven black females who were each asked to obtain an initial offer price from the dealer on a certain model car. The 31 individuals were made to appear as similar as possible to account for other variables that may play a role in the offer price of a car. The following data are based on the results in the article and represent the profit on the initial price offered by the dealer. Ayres wanted to determine if the profit based on the initial offer differed among the four groups.

White Male Black Male White Female Black Female 1300 853 1241 951 1899 727 646 1824 954 2053 951 559 1616 754 1943 794 4

(a) What is the response variable in this study? Is it qualitative or quantitative?
(b) State the null and alternative hypotheses.
(c) A normal probability plot of each group suggests the data come from a population that is normally distributed. Verify the requirement of equal variances is satisfied.
(d) Test the hypothesis stated in part (b).
(e) Draw side-by-side boxplots of the four groups to support the analytic results of part (d).
(f) What do the results of the analysis suggest?
(g) Because the group of black males has a small sample size, the normality requirement is best verified by assessing the normality of the residuals. Verify the normality requirement by drawing a normal probability plot of the residuals.

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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