To Examine the Differences Between Salaries of Male and Female

question 18

Essay

To examine the differences between salaries of male and female middle managers of a large bank, 90 individuals were randomly selected and 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
Gender = the gender of an individual; 1 for males, and 0 for females
The regression results obtained for the models are as follows:
Model A: Salary = β₀ + β₁ Educ + β₂ Exper + β₃ Gender + β₄ Exper × Gender + ε,
Model B: Salary = β₀ + β₁ Educ + β₂ Exper + ε, are summarized in the following table. Note: The values of relevant test statistics are shown in parentheses below the estimated coefficients.
At 1% significance level, what is the conclusion of testing the joint significance of Exper and Exper × Gender in Model A?

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Definitions:

Financial Bottom Line

The final financial result of a business after all expenses, taxes, and dividends have been deducted from total revenue.

Business Administration

The management and operation of a business, including the planning, organization, direction, and control of resources to achieve organizational objectives.

Building Strength

Refers to the process of developing or enhancing physical, mental, or structural resilience and capability.

Public Administration

The implementation of government policy and an academic discipline that studies this implementation and prepares civil servants for working in the public service.