Figure:
Suppose That in the Course of Testing Whether Salary $\text { Pooled }$

question 25

Multiple Choice

Figure:
Suppose that in the course of testing whether salary functions differ for males and females,you estimate the pooled and male and female results in Figure 6.4. $\text { Pooled }$

$\begin{array}{l}\text { ANOVA }\\\begin{array}{lccccc}\hline & d f & S S & M S & F & \text { Significance } F \\\hline \text { Regression } & 4 & 2.30931 \mathrm{E}+12 & 5.77328 \mathrm{E}+11 & 282.1787278 & 1.2198 \mathrm{E}-215 \\\text { Residual } & 4286 & 8.76901 \mathrm{E}+12 & 2045965635 & & \\\text { Total } & 4290 & 1.10783 \mathrm{E}+13 & & & \\\hline\end{array}\end{array}$


$\text { Male }$

$\begin{array}{l}\text { ANOVA }\\\begin{array}{lccccc}\hline & d f & S S & M S & F & \text { Significance } F \\\hline \text { Regression } & 4 & 1.54309 \mathrm{E}+12 & 3.85772 \mathrm{E}+11 & 131.8489492 & 9.4649 \mathrm{E}-101 \\\text { Residual } & 2136 & 6.24964 \mathrm{E}+12 & 2925860190 & & \\\text { Total } & 2140 & 7.79272 \mathrm{E}+12 & & & \\\hline\end{array}\end{array}$

$\text { Female }$

$\begin{array}{lccccc} \text { ANOVA }\\\hline& \text { of } & S S & M S & F & \text { Significance } F \\\hline \text { Regression } & 4 & 6.15055 \mathrm{E}+11 & 1.53764 \mathrm{E}+11 & 153.1758618 & 2.2255 \mathrm{E}-115 \\\text { Residual } & 2145 & 2.15323 \mathrm{E}+12 & 1003838471 & & \\\text { Total } & 2149 & 2.76829 \mathrm{E}+12 & & &\\\hline\end{array}$
Figure 6.4
-Based on the results of you the Chow test in Figure 6.4 you should

• A)focus on the pooled sample results.
• B)focus on the male and female subsample results.
• C)collect more data that does not fail the Chow test.
• D)focus on the male results only.

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Definitions:

Share Issue

A process by which a company distributes new shares to shareholders, either as part of a public offering or a private placement.

Acquisition Differential

The difference between the cost of an acquisition and the fair value of the net identifiable assets acquired.

Ownership Interest

Refers to the percentage or portion of a company that is owned by a shareholder, indicating a claim on assets and possibly a right to the income of the company.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.