Incomes of Physicians an Economist Is Analyzing the Incomes of Physicians (General

question 147

Essay

Incomes of Physicians
An economist is analyzing the incomes of physicians (general practitioners,surgeons,and psychiatrists).He realizes that an important factor is the number of years of experience.However,he wants to know if there are differences among the three professional groups.He takes a random sample of 125 physicians and estimates the multiple regression model y = β₀ + β₁x₁ + β₂x₂ + β₃x₃ + ε,where y = annual income (in $1,000),x₁ = years of experience,x₂ = 1 if physician and 0 if not,and x₃ = 1 if surgeons and 0 if not.The computer output is shown below. THE REGRESSION EQUATION IS y = 71.65 + 2.07x₁ + 10.16x₂− 7.44x₃ S = 42.6 R−Sq = 30.9% ANALYSIS OF VARIANCE ​ ​
-{Incomes of Physicians Narrative} Is there enough evidence at the 10% significance level to conclude that surgeons earn less on average than psychiatrists?

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Definitions:

Equal Pay Act

A law aimed at abolishing wage disparity based on sex by ensuring equal pay for equal work for both men and women.

PATRIOT Act

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Equal Employment Opportunity Commission

A federal agency responsible for enforcing laws against workplace discrimination and advocating for fair treatment of all employees.

National Labor Relations Board

The National Labor Relations Board (NLRB) is an independent US federal agency responsible for enforcing US labor law in regard to collective bargaining and unfair labor practices.