Question: An expert witness in a case of alleged racial discrimination in a state university school of nursing introduced a regression of the determinants of Salary of each professor for each year during an 8-year period ( n = 423) with the following results.

Dependent variable: Year (Year in which the salary was observed)

Predictors:

YearHire (year when the individual was hired)

Race (1 if individual is black, 0 otherwise)

Rank (1 if individual is assistant professor, 0 otherwise)

1. What percent of the variation in Salary can be explained by the predictor variables as a group? Does the regression as a whole indicates a very strong fit? Why or Why not? Explain. (0.25 point)
2. In examining the individual regression coefficients, can you decide/indicate which of the predicator variables are significantly different from zero? Why or Why not? Explain. (0.25 point)
3. Using the appropriate figures from the above table of results, can you explain as to whether the ethnicity of a professor matters? Why or Why not? (0.25 point)
4. Using the appropriate figures from the above table of results, can you explain as to whether on average assistant professors earn less that full professors? And if so by how much? (0.25 point)

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