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:

Variable Costs

Costs that vary directly with the level of production, such as materials and labor.

AVC

Average Variable Cost, referring to the variable cost per unit of output.

MC

An abbreviation commonly used for marginal cost, which is the cost added by producing one additional unit of a product or service.

Average Variable Cost

The variable cost per unit of output; the total variable cost divided by the number of units produced.