Essay
Exhibit 17.7.To examine the differences between salaries of male and female middle managers of a large bank,90 individuals were randomly selected and the following variables considered:
Salary = the monthly salary (excluding fringe benefits and bonuses),
Educ = the number of years of education,
Exper = the number of months of experience,
Gender = the gender of an individual;1 for males,and 0 for females.
The regression results for the models,
Model A: Salary = β0 + β1Educ + β2Exper + β3Gender + β4Exper × Gender + ε,
Model B: Salary = β0 + β1Educ + β2Exper + ε,are summarized below.
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