Question

Suppose we generate the following linear regression equation and we got the following raw R output:

formula = SALARY ~ YEARS_COLLEGE + YEARS_EXPERIENCE - GENDER
coefficients output in R: 14.8 85.5 100.7 32.1
1- Write the linear regression line equation
2- What can you say about the salary comparison between Females and Males? (explain using the linear model results above)
NOTE: GENDER = 0 for Male and GENDER = 1 for Female.

Answer 1

1- The linear regression line equation can be written as:

SALARY = 14.8 + 85.5YEARS_COLLEGE + 100.7YEARS_EXPERIENCE - 32.1*GENDER

Where:

14.8 is the intercept term (the salary of a person with 0 years of college and 0 years of experience, and who is male)

85.5 is the coefficient of YEARS_COLLEGE, which means that for every additional year of college, the salary is expected to increase by 85.5 dollars (holding all other variables constant)

100.7 is the coefficient of YEARS_EXPERIENCE, which means that for every additional year of experience, the salary is expected to increase by 100.7 dollars (holding all other variables constant)

32.1 is the coefficient of GENDER, which means that on average, the salary of a female is expected to be 32.1 dollars lower than the salary of a male with the same years of college and experience.

2- The coefficient of GENDER in the regression model is negative, which means that on average, females are expected to have a lower salary than males with the same education and experience level. However, it's important to note that this difference in salary can be due to other factors that were not included in the model (such as job type, industry, location, etc.) and may not necessarily be caused by gender discrimination. Additionally, the coefficient of GENDER does not reveal the magnitude of the difference between male and female salaries, only the average difference.

Step-by-step explanation: