Problem: How can the relationship between gender and annual salary in Wonderland be interpreted?
A researcher in Wonderland has conducted a study that examines the gender wage gap.
The relationship between annual salary (in Wonderland dollars) and gender was estimated as below in a linear format.
(Female was coded as 0 and Male was coded as 1.)
Annual Salary = -23,472 * Male + 44,728
(The p-value for the coefficient of Male is 0.02.)
How can the relationship between gender and annual salary in Wonderland be interpreted?
- There is no meaningful difference in annual salary between male and female employees from a statistical point of view.
- Male employees are expected to receive 23,472 dollars less than female employees.
- Male employees are expected to receive 44,728 dollars more than female employees
- Male employees are expected to receive 23,472 dollars more than female employees