Question
Suppose the following table was generated from a sample of 2020 CEOs relating annual salary to years of experience and the industry in which they
Suppose the following table was generated from a sample of 2020 CEOs relating annual salary to years of experience and the industry in which they are employed. Indicator (dummy) variables were created for each industry (1 if the CEO works in that industry, 0 otherwise). The Financial industry is considered the base-level industry.
| Coefficients | Standard Error | t Stat | P-Value | |
|---|---|---|---|---|
| Intercept | 132340.936370132340.936370 | 5238.0043835238.004383 | 25.26552625.265526 | 0.0000000.000000 |
| Experience | 3208.1296653208.129665 | 187.128878187.128878 | 17.14395817.143958 | 0.0000000.000000 |
| Manufacturing | 19254.89384719254.893847 | 5419.5056045419.505604 | 3.5528883.552888 | 0.0028920.002892 |
| Health Care | 11450.38912511450.389125 | 5513.7961395513.796139 | 2.0766802.076680 | 0.0554310.055431 |
| Service | 28648.09760328648.097603 | 5393.5983585393.598358 | 5.3115005.311500 | 0.0000870.000087 |
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According to the results, if a CEO in the Financial industry and a CEO in the Health Care industry both have 88 years of experience, what is the estimated difference in annual salary between the two CEOs? Enter your answer below, rounded to two decimal places.
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The Wealthtech Book The FinTech Handbook For Investors Entrepreneurs And Finance Visionaries
Authors: Susanne Chishti, Thomas Puschmann
1st Edition
1119362156, 978-1119362159
