# 7. To test whether there is a significant difference in the mean weekly earningsbetween makes and females (i.e., whether gender affects mean earnings), you regressweekly earnings on a constant and a binary variable, which takes on a value of 1 forfemales and is 0 otherwise. The results were (standard errors are in theparentheses):2Ear 610.5+160.2Female, n=5000, R2 = 0.086(9.4) (12.6)(a) Will you do a t or an F test? What is your conclusion?(b) Are these results evidence enough to argue that there is discrimination againstfemales? Why or why not?

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Step 1

Given Least square equation
n = 5000
R2 = 0.086
Ear=610.5+160.2 Female

Step 2
1. a) We will use the t-test to test the difference in mean weekly earnings between males and females

H0: βFemale = 0

H1...

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