A human resources manager reported data from a recent involuntary Reduction in Force (RIF) at her company. You are an attorney and want to determine if age discrimination was a factor (it is illegal to discriminate against employees because of age). The company reported the number of employees in two groups: 40 years old or younger, and over 40 years old. They also reported the number of employees in each group who were terminated. You want to determine if both age groups were treated equally. Which hypothesis test would be most appropriate for this analysis?

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A human resources manager reported data from a recent involuntary Reduction in Force (RIF) at her company. You are an attorney and want to determine if age discrimination was a factor (it is illegal to discriminate against employees because of age). The company reported the number of employees in two groups: 40 years old or younger, and over 40 years old. They also reported the number of employees in each group who were terminated. You want to determine if both age groups were treated equally. Which hypothesis test would be most appropriate for this analysis?

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Kayley Little · Answer 1

Test of two proportions

Explanation:

Test of two proportion allows you to compare two proportions to see if they are the same or not. It involve comparing the hypothesis (H0, H1) whether they are the same. The null hypothesis (H0) for the test is that the proportions are the same (which in this case is the age) : the alternate hypothesis (H1) is that the proportions are not the same (There is significant difference between the age group).