Question

Suppose the following data were collected from a sample of 1515 CEOs relating annual salary to years of experience and the economic sector their company belongs to. Use statistical software to find the following regression equation:

SALARYi=b0+b1EXPERIENCEi+b2SERVICEi+b3INDUSTRIALi+eiSALARYi=b0+b1EXPERIENCEi+b2SERVICEi+b3INDUSTRIALi+ei.

Is there enough evidence to support the claim that on average, CEOs in the service sector have lower salaries than CEOs in the financial sector at the 0.050.05 level of significance? If yes, write the regression equation in the spaces provided with answers rounded to two decimal places. Else, select "There is not enough evidence."

STEPS ON EXCEL WHAT GOES UNDER X WHAT GOES UNDER Y FOR THE RESIDUAL DATA ANALYSIS TEST

CEO Salaries

Salary	Experience	Service (1 if service sector, 0 otherwise)	Industrial (1 if industrial sector, 0 otherwise)	Financial (1 if financial sector, 0 otherwise)
138344	1	0	0	1
150000	16	1	0	0
182590	19	0	0	1
154725	19	1	0	0
185465	20	0	0	1
152925	19	0	1	0
1193691	1	0	0	1
141000	8	0	1	0
169338	29	0	1	0
141775	9	0	1	0
147050	14	1	0	0
191675	21	0	0	1
164700	30	1	0	0
152225	18	1	0	0
159337	25	0	1	0

Answer

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SALARYi =_____ + _______   EXPERIENCEi + _______ SERVICEi + ______ INDUSTRIALi + ei

Answer 1

answer:

SALARYi = 514016.08 - 10940.57*EXPERIENCEi - 148029 * SERVICEi - 164210.8 INDUSTRIALi

outptut:

procedure:

data -> data analysis -> regression