Question: Your firm is worried about being sued for gender discrimination. There is a growing perception that males are getting paid more than females in your department. Your job is to analyze the data given in “DNSC202_HW06_Q2.xls ” which includes information regarding the annual salary, years of experience and gender. For the gender variable, you can assume that “Gender = 1 ” represents a male category.

a.) Using a 0.05 level of significance, do you believe that males are getting paid more than the females in your department. Please state your hypothesis clearly (both verbally and symbolically). Also briefly explain the testing procedure (namely what type of test you are using and why you are using it).

b.) At a meeting someone suggests that the experience of your workers should also be considered as a possible explanation of the salary differences. Use multiple-regression to analyze the claim. Please report your regression output in your write-up. Also write down your regression equation.

c.) Briefly interpret the meanings of b0, b1 and b2.

d.) How much of the total variation is explained by your regression model? Please show how you would calculate this value?

e.) Determine the adjusted R-Squared value and show how you would calculate it.

f.) Using a 0.05 level of significance, do you think that at least one of the independent variables provide any explanatory power in predicting the salary? Please state your hypothesis clearly (both verbally and symbolically). Also briefly explain the testing procedure (namely what type of test you are using and why you are using it).

g.) Finally, using a 0.05 level of significance do you believe that discrimination exists in your department? Please state your hypothesis clearly (both verbally and symbolically). Also briefly explain the testing procedure (namely what type of test you are using and why you are using it).