A two-sample t-test has a lot in common with simple regression. The output shown

Question

A two-sample t-test has a lot in common with simple regression. The output shown in the accompanying display summarizes the results of fitting a simple regression with only a dummy variable as the explanatory variable. The data are a sample of salaries of 36 mid-level managers at a large firm, with salary (in thousands of dollars) regressed on Group. The dummy variable Group identifies whether a manager is male or female and is coded as 1 for men and 0 for women. The average salary of the 22 males in this sample is $150,773, whereas the salaries of the 14 women average $143,500. Complete parts a through c below. Click the icon to view the output. (a) Interpret the estimated intercept and slope in the fitted simple regression. Choose the correct answer below 0 A. The intercept is the mean salary for women. The slope is the difference in salaries, with men marginally O B. The intercept is the mean salary for men. The slope is the difference in salaries, with men marginally making ° C. The intercept is the mean salary for men. The slope is the difference in salaries, with men marginally making 0 D. The intercept is the mean salary for women. The slope is the difference in salaries, with men marginally making $7,273 more than women overal. $7,273 less than women overall. $7,273 more than women overall. making $7,273 less than women overall.

Explanation / Answer

The data is not shown, but logically, it seems that option A is correct. The intercept is the mean salary for women. Slope is the difference in salaries, with men making $ 7,273 more than women.

For men, the independent variable is 1 and substituting in the equation, we get the average salary for men.

For women, the independent variable is 0, so the second term is 0 and we are left with only the intercept, the average salary for women.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.