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	?24331.924717	3419.740424	?7.115138	0.000002
Education	4578.868673	214.295364	21.367092	0.000000
Female (1 if female, 0 if male)	5443.681615	1378.670516	3.948501	0.001037

Selecting a radio button will replace the entered answer value(s) with the radio button value. If the radio button is not selected, the entered answer is used. or is there not enough evidence?

Answer 1

Since the p-value for the Variable Female is less than 0.05, hence this variable is significant.

Hence,

Regression equation is:

Salary = 24331.924717 + 4578.868673 * Education + 5443.681615 * Female

For Males, value of the variable Female = 0 and for Females, value of the variable Female = 1.

Hence, Keeping all the other conditions constant, Salary is dependent on the value of the variable Female. So, there is a salary difference between men and women.

Salary Difference = 5443.681615 (1-0) = 5443.681615