Suppose that a researcher, using wage data on

245

randomly selected male workers and

274

female workers, estimates the OLS regression

Wage=12.270+2.078Male,R2=0.05,SER=4.1,
(0.2254) (0.3528)

where Wage is measured in dollars per hour and Male is a binary variable that is equal to 1 if the person is a male and 0 if the person is a female. Define the wage gender gap as the difference in mean earnings between men and women.What is the estimated gender gap?The estimated gender gap equals

$enter your response here

per hour.

(Round

your response to three decimal

places.)

The null and alternative hypotheses are

H0:

1

=

0

versus

H1:

10.

The

t-statistic

for testing the null hypothesis that there is no gender gap is

enter your response here.

(Round

your response to two decimal

places.)

The

p-value

for testing the null hypothesis that there is no gender gap is

enter your response here.

(Round

your response to four decimal

places.)

The estimated effect of gender gap is statistically significant at the:I. 5% levelII. 1% levelIII. 0.01% level

A.

III only.

B.

I only.

C.

I and II.

D.

I, II, and III.

Construct a 95% confidence interval for the effect of gender gap.The 95% confidence interval for the effect of gender gap is

(enter your response here,

enter your response here).

(Round

your responses to two decimal

places.)

From the sample, the average wage of women is

$enter your response here

per hour.

(Round

your response to three decimal

places.)

From the sample, the average wage of men is

$enter your response here

per hour.

(Round

your response to three decimal

places.)

Another researcher uses these same data but regresses Wages on

Female,

a variable that is equal to 1 if the person is female and 0 if the person a male. What are the regression estimates calculated from this regression?

Wage=

0

+

1Female,

R2,

SER.

0

=

enter your response here.

(Round

your response to three decimal

places.)

1

=

enter your response here.

(Round

your response to three decimal

places.)

R2

=

enter your response here.

(Round

your response to two decimal

places.)

SER =

enter your response here.

(Round

your response to one decimal

place.)