An expert witness in a case of alleged racial discrimination in a state university school of nursing introduced a regression of determinants of Salary of each professor for each year during an 8 year period (n=423) with the following results, with the dependent variable Year (year in which salary was observed) and predictors Year Hire (year when the individual was hired), Race (1 if individuals are black, 0otherwise), and Rank (1 if individual is an assistant professor, 0 otherwise). (a) which of these predictor variables are significant predictors of salary? Explain. (b) what does the coefficient on race tell you about the relationship salary and race? (c) what does the coefficient on rant tell you about the relationship between salary and rank?
|
Variable |
Coefficient |
T |
P |
|
Intercept |
-3,816,521 |
-29.4 |
.000 |
|
Year |
1,948 |
29.8 |
.000 |
|
YearHire |
-826 |
-5.5 |
.000 |
|
Race |
-2,093 |
-4.3 |
.000 |
|
Rank |
-6,438 |
-22.3 |
.000 |
Rsquared= 0.811 Rsquaredadj= 0.809 s= 3,318
Answer
(A) All of the given predictor variables or independent variables are significant because the p value corresponding to each variable is 0.000, which is significant.
(B) Coefficient of race is -2093, this is a negative value. Negative value decreases the dependent variable
So, we can say that for every one race increase, there will be a decrease of 2093 in the salary
(C) Coefficient of rank is -6438, this is a negative value. Negative value decreases the dependent variable
So, we can say that for every one rank increase, there will be a decrease of 6438 in the salary
An expert witness in a case of alleged racial discrimination in a state university school of...