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at a big company there have been complaints of gender discrimination so the company fits the regression model: 1. At a big company, there have

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at a big company there have been complaints of gender discrimination so the company fits the regression model:

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1. At a big company, there have been complaints of gender discrimination, so the company fits the following regression model: Y1 = Bot BIX, + EL where Y, is the monthly salary (in thousands of dollars), and X; = 0 if male and 1 if female. A sample of n = 20 employees is taken: 10 males and 10 females (so EX; = 10) and the results are: The sum of the 20 salaries are: $147,000 per month, i.e. EY, = 147 The sum of the 10 male salaries are: $75, 000 The sum of the 10 female salaries are: $72,000 a) Calculate the regression line. In blackboard: i) Enter the Y-intercept (one decimal place) ii) Enter the slope (one decimal place) b) Suppose the SSE when the above regression is fitted is 10.8Test to see if gender has an effect on salary. In blackboard: i) What is the null hypothesis? ii) Enter the absolute value (i.e. [t*[) of the t-test statsitc (two decimal places) iii) Give the critical t-value (from the t-table) for rejection of H. (3.d.p.) iv) What is your conclusion? c) Suppose the correlation coefficient is -0.4. What percentage of the total variation in salary can be explained by gender

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