MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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Suppose the following table was generated from a sample of 2020 CEOs relating annual salary to years of experience and the industry in which they are employed. Indicator (dummy) variables were created for each industry (1 if the CEO works in that industry, 0 otherwise). The Financial industry is considered the base-level industry.

  Coefficients Standard Error t Stat P-Value
Intercept 146764.182525146764.182525 4444.7308874444.730887 33.01981333.019813 0.0000000.000000
Experience 3092.1835033092.183503 221.155524221.155524 13.98194113.981941 0.0000000.000000
Service 8404.3798898404.379889 4753.9693564753.969356 1.7678661.767866 0.0974120.097412
Health Care −17859.350459−17859.350459 4768.1459284768.145928 −3.745555−3.745555 0.0019490.001949
Manufacturing 4332.7956954332.795695 4654.1548254654.154825 0.9309520.930952 0.3666200.366620

According to the results, if a CEO in the Financial industry and a CEO in the Manufacturing industry both have 22 years of experience, what is the estimated difference in annual salary between the two CEOs? Enter your answer below, rounded to two decimal places.

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