Question
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)
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