Exhibit 17

question 105

Essay

Exhibit 17.7.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 for the models,
Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + β₄Exper × Gender + ε,
Model B: Salary = β₀ + β₁Educ + β₂Exper + ε,are summarized below. Note.The values of relevant test statistics are shown in parentheses below the estimated coefficients.
Refer to Exhibit 17.7.At 1% significance level,what is the conclusion of testing the joint significance of Exper and Exper × Gender in Model A?

---

Definitions:

Quick Assets

Quick Assets are those assets that can be quickly converted into cash, typically including cash, marketable securities, and receivables.

Price/Earnings

A ratio used to value a company by dividing its current share price by its per-share earnings, indicating the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company’s earnings.

Dividend Yield

An economic indicator that highlights the yearly amount a company distributes in dividends in comparison to its stock price.