Question: You have been asked to serve as consultant and expert witness for a wage discrimination lawsuit. A group of Latino and black women have filled a suit against their company, Amalgamated Distributors Inc. The women, who have between 5 and 25 years of service with the company, allege that the average rate of their annual wage increase has been significantly less than that of a group of white males and a group of white females. The jobs for all three groups contain a variety of administrative, analytical, and managerial components. All of the employees began with a bachelor’s degree, and years of experience is an important factor for predicting job performance and worker productivity. You have been provided with the present monthly wage and the number of years of experience for all workers in the three groups. In addition, the data indicate those in all three groups who have obtained an MBA degree. Note that you do not perform any data analysis for this problem.

a) Develop a statistical model and analysis that can be used to analyze the data. Indicate hypothesis tests that can be used to provide strong evidence of wage discrimination if wage discrimination exists. Describe your analysis completely and clearly.

b) Assume that your hypothesis test result in strong evidence that supports your clients’ claim. Briefly summarize the key points that you will make in your expert witness testimony at the court. The company’s lawyer can be expected to cross- examine you with the help of a statistician.