Exhibit 17

question 56

Multiple Choice

Exhibit 17.2.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,
Train = the number of weeks of training,
Gender = the gender of an individual;1 for males,and 0 for females.
Also,the following Excel partial outputs corresponding to the following models are available:
Model A: Salary = β₀ + β₁Educ + β₂Exper + β₃Train + β₄Gender + ε Model B: Salary = β₀ + β₁Educ + β₂Exper + β₃Gender + ε Refer to Exhibit 17.2.A group of female managers considers a discrimination lawsuit if on average their salaries could 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 conclusion of the appropriate test at 10% significance level?

• A)Do not reject H₀;the salaries of female managers cannot be proven to be lower on average by more than $500.
• B)Reject H₀;the salaries of female managers cannot be proven to be lower on average by more than $500.
• C)Do not reject H₀;the salaries of female mangers are lower on average by more than $500.
• D)Reject H₀;the salaries of female mangers are lower on average by more than $500.

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