Mendenhall and Sincich (1993) present data that can be used to investigate allegations of gender discrimination in

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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 the page margin. 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 0 if the potential employee was a female. If we use the logistic regression model

to analyze these data, we find that the point estimates of the model parameters and their associated p-values (given in parentheses) are b0 = €“ 14.2483 (.0191), b1 = 1.1549 (.0552), b2 .9098 (.0341), and b3 = 5.6037 (.0313).
a. Consider a potential employee having 4 years of education and 5 years of experience. Find (1) a point estimate of the probability that the potential employee will be hired if the potential employee is a male, and (2) a point estimate of the probability that the potential employee will be hired if the potential employee is a female.
b. (1) Using b3 = 5.6037, find a point estimate of the odds ratio for x3. (2) Interpret this odds ratio. (3) Using the p-value describing the importance of x3, can we conclude that there is strong evidence that gender is related to the probability that a potential employee will be hired?

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Essentials Of Business Statistics

ISBN: 9780078020537

5th Edition

Authors: Bruce Bowerman, Richard Connell, Emily Murphree, Burdeane Or

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