Question
A researcher wonders whether males get paid more, on average, than females at a large firm. She interviews 50 employees and collects data on each
A researcher wonders whether males get paid more, on average, than females at a large firm. She interviews 50 employees and collects data on each employee's hourly wage (Wage in $), years of higher education (EDUC), years of experience (EXPER), age (Age), and a Male dummy variable that equals 1 if male, 0 otherwise. A portion of the data is shown in the accompanying table.
a. Estimate: Wage = 0 + 1EDUC + 2EXPER + 3Age + 4Male + .
b. Predict the hourly wage of a 40-year-old male and femaleemployee with 10 years of higher education and 5 years experience.
c-1. Interpret the estimated coefficient for Male.
- The male coefficient implies that males earn $6.03 per hour more than females at the firm, holding everything else the same.
- The male coefficient implies that males earn $6.03 per hour less than females at the firm, holding everything else the same.
- The male coefficient implies that males earn $1.23 per hour more than females at the firm, holding everything else the same.
- The male coefficient implies that males earn $1.23 per hour less than females at the firm, holding everything else the same.
c-2. Is the Male variable significant at the 5% level? Do the data suggest that sex discrimination exists at this firm?
- Yes, since we do not reject the null hypothesis of discrimination.
- Yes, since we reject the null hypothesis of no discrimination.
- No, since we reject the null hypothesis of discrimination.
- No, since we reject the null hypothesis of no discrimination.
| Wage | EDUC | EXPER | Age | Male |
| 40.26 | 2 | 2 | 40 | 1 |
| 22.29 | 3 | 1 | 39 | 0 |
| 12.82 | 8 | 2 | 38 | 0 |
| 22.46 | 11 | 9 | 53 | 1 |
| 28.02 | 1 | 15 | 59 | 1 |
| 26.86 | 7 | 12 | 36 | 1 |
| 13.25 | 3 | 5 | 45 | 0 |
| 18.29 | 10 | 12 | 37 | 0 |
| 26.03 | 3 | 14 | 37 | 1 |
| 27.11 | 4 | 3 | 43 | 1 |
| 22.01 | 4 | 5 | 32 | 0 |
| 24.28 | 3 | 18 | 40 | 1 |
| 25.83 | 3 | 1 | 49 | 1 |
| 20.71 | 10 | 10 | 43 | 0 |
| 18.19 | 4 | 9 | 31 | 0 |
| 32.75 | 5 | 22 | 45 | 0 |
| 44.87 | 9 | 3 | 31 | 1 |
| 15.83 | 2 | 14 | 55 | 0 |
| 21.04 | 6 | 5 | 30 | 1 |
| 12.8 | 5 | 3 | 28 | 0 |
| 20.37 | 5 | 15 | 60 | 1 |
| 25.21 | 11 | 13 | 32 | 0 |
| 10.2 | 3 | 9 | 58 | 1 |
| 15.36 | 4 | 4 | 28 | 0 |
| 15.89 | 5 | 5 | 40 | 1 |
| 16.64 | 9 | 2 | 37 | 0 |
| 25.68 | 7 | 18 | 52 | 1 |
| 20.49 | 8 | 4 | 44 | 0 |
| 21.31 | 10 | 4 | 57 | 0 |
| 21.12 | 11 | 3 | 30 | 1 |
| 17.53 | 5 | 8 | 43 | 0 |
| 20.99 | 3 | 6 | 31 | 1 |
| 9.32 | 5 | 3 | 33 | 0 |
| 16.57 | 4 | 23 | 51 | 1 |
| 15.26 | 7 | 15 | 37 | 0 |
| 17.84 | 3 | 9 | 45 | 0 |
| 11.97 | 5 | 3 | 55 | 0 |
| 14.66 | 9 | 14 | 57 | 0 |
| 38.34 | 6 | 16 | 36 | 1 |
| 16.05 | 3 | 20 | 60 | 1 |
| 8.39 | 7 | 5 | 35 | 0 |
| 12.66 | 11 | 10 | 34 | 0 |
| 12.91 | 2 | 4 | 28 | 1 |
| 9.12 | 6 | 1 | 25 | 0 |
| 19.69 | 5 | 10 | 43 | 1 |
| 17.69 | 8 | 2 | 42 | 1 |
| 20.47 | 3 | 17 | 47 | 0 |
| 13.51 | 8 | 2 | 46 | 1 |
| 22.71 | 6 | 15 | 52 | 0 |
| 21.27 | 9 | 11 | 64 | 0 |
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
5th Canadian edition
77429494, 1259105709, 1260480798, 978-1259105708
