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D. The tabulation of the number of male and <br />female classes above and below the predicted <br />pay line is made. <br />Forexample: <br />F above = 3 M above = 6 <br />F below = 1 M below = 4 <br />Total = 4 Total = 10 <br />E. The percentage of male and female classes <br />below predicted pay is calculated by dividing <br />the number of classes below by the total <br />number of classes in each group. <br />Female classes: 1 _ 4 = 25% <br />Male classes: 4= 10 = ^^^' <br />YV /'O <br />F. The percentage of male classes below pre- <br />dicted pay is divided by the percentage of <br />female classes below predicted pay. This <br />produces the "underpayment ratio." <br />40% = 25% = 160% <br />G. An underpayment ratio below 80% shows that <br />female classes are compensated "consistently <br />below" male classes of comparable value. If <br />the underpayment ratio is below 80%, further <br />analysis is done to determine ifthe <br />underpayment of females is statistically <br />significant. Using the t-test, a determination is <br />made whether or not the dollar difference is <br />statistically significant. Details ofthe t-test <br />can be found on page four. <br />Page 17 Guide to Understanding Pay Equity Compliance and Computer Reports - 10/01 <br />