Study after study indicate that men earn higher incomes than women (SEX: 1 = Male, 2 =

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Study after study indicate that men earn higher incomes than women (SEX: 1 = Male, 2 = Female).

a. To determine the extent of the differential in 2014 estimate the difference between male and female annual incomes (RINCOME).

b. What are the required conditions for the validity of your answer in part (a)?

c. Are the required conditions satisfied? Explain.

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