A large corporation was recently accused of discriminating against female managers. A random sample of 100 managers from the firm found that the mean annual salary of the 38 female managers in the sample was $76,189, and the mean annual salary of the 62 male managers was $97,832. This looks like pretty damning evidence of discrimination. The CEO of the corporation was indignant, claiming that the firm followed a strict policy of equal pay for equal work, and that maybe some other factor or factors were responsible for the perceived differences. He has asked you to look into this, and you were able to find the number of years of education and years of experience for each member of the sample. These data are contained in the file Discrimination.xls, which records the member's gender/sex as a 0 for males and a 1 for females.

1. Do these data taken as a whole explain a substantial amount of the variation in salaries among these managers?
2. What is your best estimate of the systematic difference between male and female salaries?
3. Does it appear that gender/sex is a significant factor in the differences in salary in this sample?