To Examine the Differences Between Salaries of Male and Female

question 39

Multiple Choice

To examine the differences between salaries of male and female middle managers of a large bank, 90 individuals were randomly selected, and two models were created with the following variables considered: Salary = the monthly salary (excluding fringe benefits and bonuses) ,
Educ = the number of years of education,
Exper = the number of months of experience,
Train = the number of weeks of training,
Gender = the gender of an individual; 1 for males, and 0 for females.
Excel partial outputs corresponding to these models are available and shown below.
Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Train + β₄Gender + ε Model B: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + ε Using Model A, which of the following is the estimated average difference between the salaries of male and female employees with the same years of education, months of experience, and weeks of training?

• A) About $5,423
• B) About $619
• C) About $5,278
• D) About $615

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Definitions:

Id

In psychoanalytic theory, the part of the mind that acts as the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Primitive

Denotes something that is basic or unsophisticated in terms of development or technology, often implying an early stage of evolutionary or historical development.

Instinctive Component

An innate part of behavior that arises from within and is driven by evolutionary pressures, without the need for conscious thought.

Personality

A mix of features and qualities that define an individual's specific character.