Exhibit 17.2.To examine the differences between salaries of male and female middle managers of a large bank,90 individuals were randomly selected and 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.
Also,the following Excel partial outputs corresponding to the following models are available:
Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Train + β₄Gender + ε Model B: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + ε Refer to Exhibit 17.2.A group of female managers considers a discrimination lawsuit if on average their salaries can be statistically proven to be lower by more than $500 than the salaries of their male peers with the same level of education and experience.Using Model B,what is the alternative hypothesis for testing the lawsuit condition?

Question

Exhibit 17.2.To examine the differences between salaries of male and female middle managers of a large bank,90 individuals were randomly selected and 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.
Also,the following Excel partial outputs corresponding to the following models are available:
Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Train + β₄Gender + ε

Model B: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + ε

Refer to Exhibit 17.2.A group of female managers considers a discrimination lawsuit if on average their salaries can be statistically proven to be lower by more than $500 than the salaries of their male peers with the same level of education and experience.Using Model B,what is the alternative hypothesis for testing the lawsuit condition?

Quizplus · Accepted Answer

The Answer of Exhibit 17.2.To examine the differences between salaries of male and female middle managers of a large bank,90 individuals were randomly selected and 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. Also,the following Excel partial outputs corresponding to the following models are available: Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Train + β₄Gender + ε Model B: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + ε Refer to Exhibit 17.2.A group of female managers considers a discrimination lawsuit if on average their salaries can be statistically proven to be lower by more than $500 than the salaries of their male peers with the same level of education and experience.Using Model B,what is the alternative hypothesis for testing the lawsuit condition? A)H_A: β₃ ≤ 500 B)H_A: β₃ < 500 C)H_A: β₃ ≠ 500 D)H_A: β₃ > 500