Multiple Choice
To examine the differences between salaries of male and female middle managers of a large bank,90 individuals were randomly selected,and two models were created with 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.
Excel partial outputs corresponding to these models are available and shown below.
Model A: Salary = β0 + β1 Educ + β2 Exper + β3 Train + β4 Gender + ε Model B: Salary = β0 + β1 Educ + β2 Exper + β3 Gender + ε
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
Correct Answer:

Verified
Correct Answer:
Verified
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