In Model #3, how would one interpret the estimated parameter b5 if b5 > 0?
Posted: Tue Aug 03, 2021 7:28 am
Given three models that explain salaries associated with a particular job, (Model #1) Yi = b0 + b1D
(Model #2) Yi = b0 + b1X1i +b2X2i + b3X3i. + b4D
(Model #3) Yi = b0 + b1X1i +b2X2i + b3X3i. + b4D+ b5X3iD X1 = Years of Education
X2 = Level of Position (e.g., worker vs. supervisor)
X3 = Years in the Profession
D= 1 if Male
D=0 if Female
In Model #3, how would one interpret the estimated parameter b5 if b5 > 0?
For each additional year of experience, males are paid more than females
(Model #2) Yi = b0 + b1X1i +b2X2i + b3X3i. + b4D
(Model #3) Yi = b0 + b1X1i +b2X2i + b3X3i. + b4D+ b5X3iD X1 = Years of Education
X2 = Level of Position (e.g., worker vs. supervisor)
X3 = Years in the Profession
D= 1 if Male
D=0 if Female
In Model #3, how would one interpret the estimated parameter b5 if b5 > 0?
For each additional year of experience, males are paid more than females