Question

An investigator developed a multiple regression model for employee salaries at a particular company. In this multiple regression model, the salaries are in thousands of dollars. For example, a data entry of 35 for the dependent variable indicates a salary of $35,000. The indicator variable for gender is coded as if male and if female. The computer output of this multiple regression model shows that the coefficient for this variable is -4.2. The t test showed that was significant at the 0.05 level. This result implies that for male and female workers of the company,

Choices below

on the average, salaries do not differ.

on the average, males earn $4,200 less.

on the average, females have 4.2 more years of experience.

on the average, females earn $4,200 less.

on the average, males have 4.2 more years of experience.

Answer 1

Solution:

An investigator developed a multiple regression model for employee salaries at a particular company. In this multiple regression model, the salaries are in thousands of dollars. For example, a data entry of 35 for the dependent variable indicates a salary of $35,000. The indicator variable for gender is coded as if male and if female. The computer output of this multiple regression model shows that the coefficient for this variable is -4.2. The t test showed that was significant at the 0.05 level. This result implies that for male and female workers of the company,

c) on the average, females earn $4,200 less.