Mendenhall and Sincich (1993) present data that can be used to investigate allegations of gender discrimination in
Question:
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 I 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 a point estimate of the probability that the potential employee will be hired if the potential employee is a male, and find a point estimate of the probability that the potential employee will be hired if the potential employee is a female.
b. Using b3 = 5.6037, find a point estimate of the odds ratio for x3. Interpret this odds ratio. 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?
Step by Step Answer:
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell