To examine the differences between salaries of male and female middle managers of a large bank, 90 individuals were randomly selected, and two models were created with the following variables considered: Salary = the monthly salary (excluding fringe benefits and bonuses) ,
Educ = the number of years of education,
Exper = the number of months of experience,
Train = the number of weeks of training,
Gender = the gender of an individual; 1 for males, and 0 for females.
Excel partial outputs corresponding to these models are available and shown below.
Model A: Salary = β0 + β1Educ + β2Exper + β3Train + β4Gender + ε
Model B: Salary = β0 + β1Educ + β2Exper + β3Gender + ε
The variable Train is deleted from Model A which results in Model B. Which of the following justifies this choice?
A) The adjusted R2 Model B is lower than the adjusted R2 of Model A, and the variable is individually significant in Model A.
B) The adjusted R2 of Model B is higher than the adjusted R2 of Model A, and the variable is individually significant in Model A.
C) The adjusted R2 of Model B is lower than the adjusted R2 of Model A, and the variable is not individually significant in Model A.
D) The adjusted R2 of Model B is higher than the adjusted R2 of Model A, and the variable is not individually significant in Model A.
Correct Answer:
Verified
Q54: Suppose that we have a qualitative variable
Q55: Consider the following regression model: Humidity =
Q56: To examine the differences between salaries of
Q57: The model y = β0 + β1x
Q58: For the model y = β0 +
Q60: To examine the differences between salaries of
Q61: A researcher wants to examine how the
Q62: In the model y = β0 +
Q63: In the model y = β0 +
Q64: In the model y = β0 +
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents