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 Using Model B,what is the regression equation found by Excel for males?

Question

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

Using Model B,what is the regression equation found by Excel for males?

Quizplus · Accepted Answer

The regression equation for males is found by substituting the value of gender as 1 in Model B. Thus, the regression equation becomes Salary = β₀ + β₁Educ + β₂Exper + β₃(1) + ε. Simplifying this equation using the coefficients given in the Excel output for Model B, we get Salary = 5,322.5011 + 139.5366Educ + 3.3488Exper. Therefore, the answer is B.

To Examine the Differences Between Salaries of Male and Female