Question

Propensity Score Matching or Weighted Least Squares

A highly paid consulting firm did a study to determine if privately-held financial firms hire fewer women than publicly-held firms. The consulting firm randomly picked 500 privately-held firms and 500 publicly-held firms to interview Among the publicly-held firms, 450 of the 500 firms respond to the survey. The following table gives the results of the study:

	Publicly-Held	Privately-Held
Percent of Women in the Firm	20%	25%
Number of Firms Responding	400	400

Since the non-responding firms may not have been a random sample, the estimates of the percent of women in each type of firm may be biased. Find the bounds on the proportion of women hired in each type of firm if all firms had responded. (You should have upper and lower bounds for both publicly-and privately-held firms.)

Answer 1