CAS Exam MAS-I Spring 2019, Question 29
Study guide: Exam MAS-I
Tim uses an ordinary least squares regression model to predict salary based on Experience and Gender. Gender is a qualitative variable and is coded as follows:
\text{Gender} = \begin{cases} 1 & \text{if Male} \\ 0 & \text{if Female} \end{cases}His analysis results in the following output:
| Coefficients | Estimate | Std. Error | t-value | Pr(>|t|) |
|---|---|---|---|---|
| Intercept | 18169.300 | 212.2080 | 85.62027 | 2.05E-14 |
| Experience | 1110.233 | 59.8224 | 18.55881 | 1.75E-08 |
| Gender | 169.550 | 162.9177 | 10.38285 | 2.62E-06 |
Abby uses the same data set but codes the Gender as follows:
\text{Gender} = \begin{cases} 1 & \text{if Female} \\ 0 & \text{if Male} \end{cases}Calculate the value of the Intercept in Abby's model.
- A) At most 18,169.3
- B) Greater than 18,169.3, but at most 18,400.0
- C) Greater than 18,400.0, but at most 18,600.0
- D) Greater than 18,600.0
- E) The answer cannot be computed from the information given
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