An Investigator Hired by a Client Suing for Sex Discrimination

Multiple Choice

An investigator hired by a client suing for sex discrimination has developed a multiple regression model for predicting employee salaries for the company in question.In this multiple regression model,the salaries are measured in thousands of dollars.For example,a data entry of 35 for the dependent variable indicates a salary of $35,000.The indicator (dummy) variable for sex is coded as X₁ = 0 if male and X₁ = 1 if female.The computer output of this multiple regression model shows that the coefficient of X₁ is - 4.2 and that X₁ is significant at the 1% level of significance.Interpret the coefficient of X₁.

A) We estimate that,on average,females earn $4200 less than males.
B) We estimate that,on average,males earn $4200 less than females.
C) We estimate that,on average,salaries do not differ.
D) We estimate that,on average,males have 4.2 more years of experience than females.
E) We estimate that,on average,females have 4.2 more years of experience than males.