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Exhibit 17

Question 29

Multiple Choice

Exhibit 17.2.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,
Train = the number of weeks of training,
Gender = the gender of an individual;1 for males,and 0 for females.
Also,the following Excel partial outputs corresponding to the following models are available:
Model A: Salary = β0 + β1Educ + β2Exper + β3Train + β4Gender + ε Exhibit 17.2.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, Train = the number of weeks of training, Gender = the gender of an individual;1 for males,and 0 for females. Also,the following Excel partial outputs corresponding to the following models are available: Model A: Salary = β<sub>0</sub> + β<sub>1</sub>Educ + β<sub>2</sub>Exper + β<sub>3</sub>Train + β<sub>4</sub>Gender + ε Model B: Salary = β<sub>0</sub> + β<sub>1</sub>Educ + β<sub>2</sub>Exper + β<sub>3</sub>Gender + ε Refer to Exhibit 17.2.A group of female managers considers a discrimination lawsuit if on average their salaries can be statistically proven to be lower by more than $500 than the salaries of their male peers with the same level of education and experience.Using Model B,what is the alternative hypothesis for testing the lawsuit condition? A) H<sub>A</sub>: β<sub>3</sub> ≤ 500 B) H<sub>A</sub>: β<sub>3</sub> < 500 C) H<sub>A</sub>: β<sub>3</sub> ≠ 500 D) H<sub>A</sub>: β<sub>3</sub> > 500 Model B: Salary = β0 + β1Educ + β2Exper + β3Gender + ε Exhibit 17.2.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, Train = the number of weeks of training, Gender = the gender of an individual;1 for males,and 0 for females. Also,the following Excel partial outputs corresponding to the following models are available: Model A: Salary = β<sub>0</sub> + β<sub>1</sub>Educ + β<sub>2</sub>Exper + β<sub>3</sub>Train + β<sub>4</sub>Gender + ε Model B: Salary = β<sub>0</sub> + β<sub>1</sub>Educ + β<sub>2</sub>Exper + β<sub>3</sub>Gender + ε Refer to Exhibit 17.2.A group of female managers considers a discrimination lawsuit if on average their salaries can be statistically proven to be lower by more than $500 than the salaries of their male peers with the same level of education and experience.Using Model B,what is the alternative hypothesis for testing the lawsuit condition? A) H<sub>A</sub>: β<sub>3</sub> ≤ 500 B) H<sub>A</sub>: β<sub>3</sub> < 500 C) H<sub>A</sub>: β<sub>3</sub> ≠ 500 D) H<sub>A</sub>: β<sub>3</sub> > 500 Refer to Exhibit 17.2.A group of female managers considers a discrimination lawsuit if on average their salaries can be statistically proven to be lower by more than $500 than the salaries of their male peers with the same level of education and experience.Using Model B,what is the alternative hypothesis for testing the lawsuit condition?


A) HA: β3 ≤ 500
B) HA: β3 < 500
C) HA: β3 ≠ 500
D) HA: β3 > 500

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