Question

Suppose the following data were collected from a sample of 15 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 0.05 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."

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)
158663	23	0	1	0
173812	31	1	0	0
165125	27	1	0	0
210449	25	0	0	1
157350	23	0	1	0
143720	8	0	0	1
180175	19	0	0	1
138562	1	1	0	0
161462	23	0	1	0
142825	9	0	1	0
151688	17	1	0	0
133650	4	0	1	0
153200	20	1	0	0
138660	0	0	0	1
153380	8	0	0	1

Selecting a checkbox will replace the entered answer value(s) with the checkbox value. If the checkbox is not selected, the entered answer is used.

Answer 1

SALARYi=b0+b1EXPERIENCEi+b2SERVICEi+b3INDUSTRIALi+ei

SALARYi=144603.85+1722.74*EXPERIENCEi-21203.16*SERVICEi-22066.87*INDUSTRIALi+ei

Using Excel Data Analysis >Regression> Y =SALARY, X= EXPERIENCE,SERVICE,INDUSTRIAL