There are 850 females in your sample and 894 males. a) What is the mean earnings of males and females in this sample? b) Interpret the coefficient of Female. c) What is the wage gap?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 42PFA
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3) A subsample from the Current Population Survey is taken, on weekly earnings of
individuals, their age, and their gender. You have read in the news that women make 70
cents to the $1 that men earn. To test this hypothesis, you first regress earnings on a
constant and a binary variable, which takes on a value of 1 for females and is 0 otherwise.
The results were:
Earn = 570.70 - 170.72 ×Female,R2=0.084, SER = 282.12.
(9.44) (13.52)
There are 850 females in your sample and 894 males.
a) What is the mean earnings of males and females in this sample?
b) Interpret the coefficient of Female.
c) What is the wage gap?
Transcribed Image Text:3) A subsample from the Current Population Survey is taken, on weekly earnings of individuals, their age, and their gender. You have read in the news that women make 70 cents to the $1 that men earn. To test this hypothesis, you first regress earnings on a constant and a binary variable, which takes on a value of 1 for females and is 0 otherwise. The results were: Earn = 570.70 - 170.72 ×Female,R2=0.084, SER = 282.12. (9.44) (13.52) There are 850 females in your sample and 894 males. a) What is the mean earnings of males and females in this sample? b) Interpret the coefficient of Female. c) What is the wage gap?
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