It Is Thought That There Are a Variety of Factors

question 44

Multiple Choice

It is thought that there are a variety of factors that affect a teacher's salary. Using the following
Printout and sample data, determine whether the holding of a PhD degree is a significant variable
When tested at the 10% level of significance.
X1 is years of teaching experience, x2 is principal's rating and x3 is the presence of a PhD or not.

• A) Since the p-value is less than the level of significance, the null hypothesis is rejected, and so the holding of a PhD should be included in the analysis.
• B) Since the p-value is less than the level of significance, the null hypothesis is accepted, and so the PhD should not be included in the analysis.
• C) Since the p-value is more than the level of significance, the null hypothesis is accepted, and so the PhD should not be included in the analysis.
• D) Since the p-value is more than the level of significance, the null hypothesis is rejected, and so the PhD should be included in the analysis.

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Definitions:

Marginal Products

The additional output resulting from the increase of one unit of a specific input, holding all other inputs constant.

Separating Equilibrium

Separating equilibrium refers to a situation in a market, often under conditions of asymmetric information, where different types of people choose different strategies, revealing their type.

Pooling Equilibrium

A situation in a market where all types of customers receive the same offer or treatment from a seller because the seller cannot distinguish between different types of customers.

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources.