In: Statistics and Probability
Your HR Director presents you the following data on your employees from a regression output
Dependent variable: Wage and Salary Income (INCWS)
Independent variable: a disability affecting work indicator
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INCWS | Coefficient Std. Err. t P>|t| Beta
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Work Disability | -9303.723 4475.500 -2.079 0.038 -0.070
constant | 37931.813 1416.073 26.787 0.000
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Write the regression equation for the above output.
What information does the constant give you?
What information does the slope of the coefficient give you?
Write the null and alternative hypotheses to test whether or not disabled people earn less than non-disabled people.
At the 5% significance level, do disabled people earn less than non-disabled people?
At the 1% significance level, do disabled people earn less than non-disabled people?