To examine the differences between salaries of male and female middle managers o

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 = ?0 + ?1Educ + ?2Exper + ?3Train + ?4Gender + ?

Model B: Salary = ?0 + ?1Educ + ?2Exper + ?3Gender + ?

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

rev: 10_21_2016_QC_CS-66481

df SS MS F Regression 4 28,045,960.12 7,011,490.03 43.23 Residual 85 13,787,729.88 162,208.59 Total 89 41,833,690.00 Coefficients Standard Error t-stat p-value Intercept 4,663.31 365.37 12.76 1.85E-21 Educ 140.66 20.15 6.98 6.07E-10 Exper 3.36 0.47 7.17 2.54E-10 Train 1.17 3.72 0.31 0.7543 Gender 615.15 97.33 6.32 1.16E-08

Explanation / Answer

From the regression output

for males gender =1

salary=4,713.25663.31+139.54Educ+3.35*Exper+609.25*gender

=4,713.25663.31+139.54Educ+3.35*Exper+609.25*1

=4713.25663.31+609.25*1+139.54Educ+3.35*Exper

=4713.2566331+609.25+139.54Educ+3.35*Exper

SALARY=5322.5011+39.54Educ+3.35*Exper

OPTION B

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