Answer Happy

You have read in the news that due to current COVID-19 pandemic, women work less, thus they make 70 cents to the $1 that men earn. To test this hypothesis, you first regress weekly earnings of individuals (EARN, in dollars) on a constant and their Age (in years), and their level of education (EDUC, in years) a binary variable (Female), which takes on a value of 1 for female and is 0 otherwise. The results are: Estimated (EARN) = 570.70 + 5.33(Age) - 170.72(Female) + 18.99(EDUC), n= 110, R² = 0.084, SER= 282.12 Standard errors are as here: SE(intercept)=(9.44) SE(Age)=(0.57) SE(Female) (13.52) SE(EDUC) = 3.1 (a) By carrying out 5% level of significance and using the relevant t-statistics, test for gender discrimination in here. Indicate all the steps. Justify your choice of a one-sided or two-sided alternative test. Are these results evidence enough to argue that there is discrimination against females? Why or why not? (b) Test for the joint significance of the "Age" and "Female" coefficients. Use 5% level of significance, and the result of F-statistics has become F-statistic=288.2 (Note: the required statistical table is attached) (c) Why do you think that age plays a role in earnings determination?