Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A researcher has designed the relationship between the salaries of selected employees of an organization (shown as EARN in $/hour) and their years of education

A researcher has designed the relationship between the salaries of selected employees of an organization (shown as "EARN" in $/hour) and their years of education (shown as "YRSEDUC", in years) and their age (shown as "AGE" in years) and their gender (shown as the binary variable "MALE", which "MALE"=0 indicates a male employee, and "MALE"=0 otherwise) as hereunder. A total number of(i)employees were selected for this study:

EARN(i)= B(0)+ B(1)YRSEDUC(i)+ B(2)AGE(i)+ B(3)MALE(i)+ u(i)

Using the above findings, answer the following questions:

A-Comment about the slope coefficient of the variable "MALE"

B-Suppose that the t-ratio of the corresponding slope coefficient for "MALE" becomes -0.58 in an estimated regression. Verify if "MALE" is an important variable in the estimated regression. (Use 5% level of significance, and a two sided test. Show all required steps)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Engineering Mathematics

Authors: Dennis G Zill, Warren S Wright

5th Edition

1449679781, 9781449679781

More Books

Students also viewed these Mathematics questions