To Examine the Differences Between Salaries of Male and Female

question 75

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 A group of female managers considers a discrimination lawsuit if on average their salaries can be statistically proven to be lower by more than $500 than the salaries of their male peers with the same level of education and experience. Using Model B, what is the alternative hypothesis for testing the lawsuit condition?

• A) H_A: β₃ ≤ 500
• B) H_A: β₃ < 500
• C) H_A: β₃ ≠ 500
• D) H_A: β₃ > 500

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