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A Large Company Is Accused of Gender Discrimination in Wages β\beta

Question 12

Multiple Choice

.A large company is accused of gender discrimination in wages.The following model has been estimated from the company's human resource information ln(WAGE) = 1.439 + .0834 EDU + .0512 EXPER + .1932 MALE
Where WAGE is hourly wage,EDU is years of education,EXPER is years of relevant experience,and MALE indicates the employee is male.What hypothesis would you test to determine if the discrimination claim is valid?


A) H0: β\beta MALE = 0 ;H1: β\beta MALE ≥ 0
B) H0: β\beta MALE = β\beta EDU = β\beta EXPER = 0 ;H1: β\beta MALE ≠ 0 and β\beta EDU ≠ 0 and β\beta EXPER ≠ 0
C) H0: β\beta MALE = β\beta EDU = β\beta EXPER = 0 ;H1: β\beta MALE ≠ 0 or β\beta EDU ≠ 0 or β\beta EXPER ≠ 0
D) H0: β\beta MALEβ\beta EDU or β\beta MALE β\beta EXPER ;H1: β\beta MALE > β\beta EDU or β\beta MALE > β\beta EXPER

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