Question

Suppose the following regression equation was generated from sample data relating annual salary to experience, gender, and marital status. Gender is represented by a dummy variable, FEMALEiFEMALEi, where FEMALEi=1FEMALEi=1 if employee i is female and FEMALEi=0FEMALEi=0 if employee i is male. Marital status is represented by a dummy variable MARRIEDiMARRIEDi where MARRIEDi=1MARRIEDi=1 if employee i is married and MARRIEDi=0MARRIEDi=0 if employee i is single.

SALARYi=46905.309796+429.685020EXPERIENCEi−2445.945436FEMALEi−35.464377EXPERIENCEi⋅FEMALEi+10084.736168MARRIEDi−60.572088EXPERIENCEi⋅MARRIEDi−14238.984644FEMALEi⋅MARRIEDi+eiSALARYi=46905.309796+429.685020EXPERIENCEi−2445.945436FEMALEi−35.464377EXPERIENCEi⋅FEMALEiSALARYi=+10084.736168MARRIEDi−60.572088EXPERIENCEi⋅MARRIEDi−14238.984644FEMALEi⋅MARRIEDi+ei

According to the regression equation above, what is the estimated starting salary for married women? Round your answer to two decimal places.

Answer 1

SALARYi   =46905.309796+429.685020EXPERIENCEi−2445.945436FEMALEi−35.464377EXPERIENCEi⋅FEMALEi+10084.736168MARRIEDi−60.572088EXPERIENCEi⋅MARRIEDi−14238.984644FEMALEi⋅MARRIEDi

here Female = 1 , Married = 1 , Experience = 0

=46905.309796+429.685020EXPERIENCEi−2445.945436 −35.464377EXPERIENCEi +10084.736168 −60.572088EXPERIENCEi −14238.984644

= (46905.309796−2445.945436 +10084.736168 −14238.984644 ) +   ( 429.685020 −35.464377 −60.572088 ) Experience

= 40305.115884 + 333.648555 Experience

= 40305.115884

= 40305.12