To Examine the Differences Between Salaries of Male and Female

question 9

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+ β₁Educ + β₂Exper + β₃Gender + β₄Exper × Gender + ε,
Model B: Salary = β₀ + β₁Educ + β₂Exper + 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:

Underwriting Spread

Underwriting spread is the difference between the price at which underwriters buy an issue from the issuer and the price at which they sell it to the public.

Issue Costs

Expenses associated with issuing new stocks or bonds, including underwriting, legal, and registration fees.

Subscription Price

The cost at which existing shareholders can purchase additional shares of stock in a company, often at a discount to the current market price.

Market Price

The present trading value at which a service or asset is available for sale or purchase.