Reference no: EM132929578

To examine whether there is a pay discrimination between white and non-white employees, the compensation manager in your company has collected a data on annual salary, race (white = 0, non-white = 1), work hours per day, rank (non-managerial rank = 0, managerial rank =1), and performance (5-point scale). Below are the results of the linear regression analyses that the compensation manager has conducted.

Equations Regression Equation P-value of the coefficient for Non-White

Equation 1 Annual pay = -12,000 * Non-White + 48,000 0.003

Equation 2 Annual pay = -11,900 * Non-White + 27 * Work hours + 47,100 0.004

Equation 3 Annual pay = -11,800 * Non-White + 25 * Work hours + 710 * Managerial Rank + 46,100 0.008

Equation 4 Annual pay = -501 * Non-White + 23 * Work hours + 560 * Managerial Rank + 2,310 * Performance + 34,500 0.320

From the results above, answer the following questions.

- Is there a raw difference in pay between white and non-white employees?

- If there is a raw difference in pay between white and non-white employees, what seems to be the reason(s) for this difference?

Group of answer choices

(1) Yes, (2) Performance

(1) Yes, (2) work hours

(1) No, (2) No raw difference

(1) Yes, (2) Both work hours and performance