Sunday, 15 November 2009

Statistics is like a mini skirt

and it hides more than it reveals.

Infosys was one of the best Indian corporate. I was surpised to find out that Infosys more competative than Harvard. I ask the fundamental question, what is harder? How do I decide whether X or Yis harder? And x and y can be Infosys, Harvard or any other entity. To me if I (or simillar people who wish to join both Infosys and Harvard) can get x but not y then y is harder for me. By doing the same for large number of people we can figure out what is harder. Another approach would be give Y to people who have X and X to people who have Y. In case many people who have Y are ready join X, then X is better and vice versa. Given that, many infoscians would be happy to join Harvard but not the other way. But statistics says the Infosys has a higher rejection ratio, so a tough place to get in.

Currently I was looking at Silicon India article, which said average salary of woman is 30 percent less than that of ab average man in Indian IT industry. I was stunned to read the news. I have not come across any IT organization which makes salary discrimination based on sex. I thought may be my knowledge is limited or I worked only at companies which does not discriminate or both. But I read the line again, it said the average salary of Indian females is less than that of average males. It can be possible because the ratio of men to women is higher for senior people who draw higher salary than the ratio in the lower salary. For example say a freshers gets 3,00,000 per anum and a 5 years exp clad gets 12,00,000 per anum. And the male to female ratio at 5 years exp is 3:1 which is 2:1 for freshers and the ratio of fresher to 5 yr exp is 3:1

We can take the smallest number with M1,M2,M3,F1 getting 12,00,000 per anum and M4,M5,M6,M7,M8,M9,M10,M11,F2,F3,F4,F5 getting 3,00,000 per anum.

Average salary of males = 5,45,454 per anum
Average Salary of females = 4,80,000 per anum

Which says the average salary is lower for woman. The figure gets even worse with higher ratio between fresher to senior position, higher salary difference and lower ratio at senior positions and higher ratio at fresher level. Of course it gets better with the opposite conditions, but truth will make the average salary look lower.

I would like to know the sample size and how average salary is calculated before jumping the gun and say women in IT paid lower than the men.

Then ave sal of male =

Then average sal of male = 12

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