To Examine the Differences Between Salaries of Male and Female

question 92

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 + β₁ Educ + β₂ Exper + β₃ Train + β₄ Gender + ε Model B: Salary = β₀ + β₁ Educ + β₂ Exper + β₃ Gender + ε Under the assumption of the same years of education and months of experience,what is the p-value for testing whether the mean salary of males is greater than the mean salary of females using Model B?

• A) At least 0.025
• B) Less than 0.025 but at least 0.01
• C) Less than 0.01 but at least 0.005
• D) Less than 0.005

---

Definitions:

Average Cost Curve

A graphical representation showing the average cost of production at different levels of output.

Production Function

A mathematical model describing the relation between input quantities and their respective outputs.

Marginal Products

A new definition for the additional units of output gained by employing one more unit of a specific input, keeping all other inputs constant.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain the same.