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PART 1: Use the following regression output to answer the questions MODEL 1 sala

ID: 3181477 • Letter: P

Question

PART 1: Use the following regression output to answer the questions MODEL 1 salary 71.138 22.184(assistant 22.385 (associate) 4.605(male) 1.524(exper) .0762 (exper 3.556 (male assistant) (2.937) (0.007) (0.978) (se) (4.931) (4.764) (3.479) (0.392) Adj R2 476 In this model we are estimating the effect of included variables on annual salary of college professors Dataset includes 600 college professors n 600 salary annual salary in thousands of US dollars assistant lif assistant professor, 0 if not associate 1 if associate professor, 0 if not male 1 if male, 0 if not exper of years experience OMITTED BASELINE IS FULL PROFESSOR

Explanation / Answer

The term male*assistant tells us that how much effect a male assistant would bring to the salary.

All other factors remaining constant, salary would decrease by 4.605 if the person is a male.

Salary=71.138-22.184(assistant)-22.385(associate)-4.605(male)+1.524(exper)-0.0762(exper^2)+3.556(male*assistant)

Male and Assistant Prof:-71.138-22.184(1)-22.385(0)-4.605(1)+1.524(5)-0.0762(5^2)+3.556(1*1)=71.138-22.184-0-4.605+7.62-1.905+3.556=53.62

Female and Assistant Prof:-71.138-22.184(1)-22.385(0)-4.605(0)+1.524(5)-0.0762(5^2)+3.556(0)=54.669

Male and Associate Prof:-71.138-22.184(0)-22.385(1)-4.605(1)+1.524(5)-0.0762(25)+3.556(1*0)=49.863

Female and Associate Prof:-71.138-22.184(0)-22.385(1)-4.605(0)+1.524(5)-0.0762(25)+3.556(0*0)=54.468

Difference (Assistant Prof)=53.62-54.669=-1.049

Difference (Associate Prof)=49.863-54.468=-4.605

No data given for FULL PROFESSOR