Question

Suppose the following table was generated from the sample data of 20 employees relating annual salary to years of education and gender. According to the results, is there a salary difference between men and women at the 0.05 level of significance? If yes, write the difference in salary in the space provided, rounded to two decimal places. Else, select "There is not enough evidence."

	Coefficients	Standard Error	t Stat	P-Value
Intercept	−15910.435186	1986.259992	−8.010248	0.000000
Education	4129.465091	114.058730	36.204726	0.000000
Male (1 if male, 0 if female)	3094.591511	689.182825	4.490233	0.000322

Answer 1

As the coefficient dummy variable value here is given to be 3094.591511, for which the p-value here is 0.000322 which is less than 0.05 that is the level of significance. Therefore the test is significant here that is the variable Male is significant here at 5% level of significance. Therefore we have sufficient evidence here that there is a salary difference between men and women.

Also the difference in salary for males and females would be given as the value of the coefficient of the dummy variable Male that is given as: 3094.59, rounded to 2 decimal places. Therefore the salary of males is expected to be 3094.59 higher than that for females.