To test whether there is a significant difference in the mean weekly earnings between males and females (i.e., whether gender affects mean earnings), you regress weekly earnings on a constant and a binary variable, which takes on a value of 1 for females and is 0 otherwise. The results were (standard errors are in the parentheses): 7. 2 Ear 610.5 160.2Female, n 5000, R2 0.086 (9.4) (12.6) (a) Will you do a t or an F test? What is your conclusion? (b) Are these results evidence enough to argue that there is discrimination against females? Why or why not?

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To test whether there is a significant difference in the mean weekly earnings
between males and females (i.e., whether gender affects mean earnings), you regress
weekly earnings on a constant and a binary variable, which takes on a value of 1 for
females and is 0 otherwise. The results were (standard errors are in the
parentheses):
7.
2
Ear 610.5 160.2Female, n 5000, R2
0.086
(9.4)
(12.6)
(a) Will you do a t or an F test? What is your conclusion?
(b) Are these results evidence enough to argue that there is discrimination against
females? Why or why not?
Transcribed Image Text:To test whether there is a significant difference in the mean weekly earnings between males and females (i.e., whether gender affects mean earnings), you regress weekly earnings on a constant and a binary variable, which takes on a value of 1 for females and is 0 otherwise. The results were (standard errors are in the parentheses): 7. 2 Ear 610.5 160.2Female, n 5000, R2 0.086 (9.4) (12.6) (a) Will you do a t or an F test? What is your conclusion? (b) Are these results evidence enough to argue that there is discrimination against females? Why or why not?
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