Answer Happy

Exercise 5.5 (Static) METHODS AND APPLICATIONS Mendenhall and Sincich (1993) present data that can be used to investigate allegations of gender discrimination in the hiring practices of a particular firm. These data are given in Table 5.1. In this table, y is a dummy variable that equals 1 if a potential employee was hired and 0 otherwise; x₁ is the number of years of education of the potential employee; x2 is the number of years of experience of the potential employee; and x3 is a dummy variable that equals 1 if the potential employee was a male and O if the potential employee was a female. b. Find a point estimate of the probability that a potential employee having 4 years of education and 5 years of experience will be hired if (Enter your answers in decimals rounded to 4 decimal places.) (1) the potential employee is a male (2) the potential employee is a female c. From the decision tree and point estimates of probability, is there a gender discrimination in hiring practices of the firm? Ⓒ Yes O No

TABLE 5.1 The Hiring Status Data DS Gender Hiring Status y 0 0 1 1 0 1 0 0 0 - 0 0 0 0 Education X₁, years 6 4 6 6 4 8 4 4 6 8 4 8 4 6 Experience X2, years 2 96 3 15258 - ANW → 10 Gender X3 0 1 1 1 0 0 1 0 0 0 -00 O 0 Hiring Status y 1 0 0 1 0 0 O O O O O 0 0 1 Education X₁, years 4 6 8 6 4 4 4 6 8 4 8 0646 6 Experience X2, years 5 4 . ܘ ܝ ܙ ܝ ܗ ܘ ܗ ܘ ܝ ܝ ܘ ܚ 12 Gender X3 1 0 1 1 0 1 0 1 1 0 0 1 1 0 Source: William Mendenhall and Terry Sincich, A Second Course in Business Statistics: Regression Analysis, Fourth edition, C1993. Reprinted with permission of Prentice Hall.