## Answers

Solving first 4 parts as per HOMEWORKLIB POLICY. Please post the rest separately. Thank you.

**Ai**

The given equation is

ln(earnings)=6.48-.44Female

What its saying is that the log of earnings decreases by 44% if you are a female. Or, in other words

ln(earnings+*d*earnings)-ln(earnings)=-.44female

where *d*earnings is change in earnings.

By approximation, we get

*d*earnings/earnings =-.44female

Meaning that being a female reduces your earnings by 44%.

**Aii**

SER is the standard deviation of the error term.

The error term is the variation in the data that happens because of factors other than gender. These may include job experience, education level etc.

SER is the standard deviation of that error.

**Aiii**

As discussed in part A, this finding indeed does suggest that, assuming all other factors were held constant, female top executives earn less than male top executives.

**Aiv**

If all other factors are held constant (such as education level, experience etc), then there is gender discrimination. If other factors were not held constant, then nothing conclusive can be said.

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