Exhibit 17.7.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,
Gender = the gender of an individual;1 for males,and 0 for females.
The regression results for the models,
Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + β₄Exper × Gender + ε,
Model B: Salary = β₀ + β₁Educ + β₂Exper + ε,are summarized below. Note.The values of relevant test statistics are shown in parentheses below the estimated coefficients.
Refer to Exhibit 17.7.At 1% significance level,what is the conclusion of testing the joint significance of Exper and Exper × Gender in Model A?

Question

Exhibit 17.7.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,
Gender = the gender of an individual;1 for males,and 0 for females.
The regression results for the models,
Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + β₄Exper × Gender + ε,
Model B: Salary = β₀ + β₁Educ + β₂Exper + ε,are summarized below.

Note.The values of relevant test statistics are shown in parentheses below the estimated coefficients.
Refer to Exhibit 17.7.At 1% significance level,what is the conclusion of testing the joint significance of Exper and Exper × Gender in Model A?

Quizplus · Accepted Answer

The Answer of Exhibit 17.7.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, Gender = the gender of an individual;1 for males,and 0 for females. The regression results for the models, Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + β₄Exper × Gender + ε, Model B: Salary = β₀ + β₁Educ + β₂Exper + ε,are summarized below. Note.The values of relevant test statistics are shown in parentheses below the estimated coefficients. Refer to Exhibit 17.7.At 1% significance level,what is the conclusion of testing the joint significance of Exper and Exper × Gender in Model A?