Given the model Income = 40 + 1.5Experience - 5Female + 1Experience x Female, at what level of experience will the expected income of men and women be the same (in other words, at what level of experience will the fitted lines for men and women intersect)?
A) At 10 years of experience
B) At 2.5 years of experience
C) At 5 years of experience
D) Not enough information.

Question

Quizplus · Accepted Answer

To find the level of experience at which men and women have the same expected income, we need to find the value of Experience that makes the coefficient of the Female variable (which is -5 + Experience) equal to 0. This happens when Experience = 5 years. Therefore, the fitted lines for men and women intersect at 5 years of experience.

Given the Model Income = 40 + 1