The Fifth National Bank

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At first if one only compares the average salaries of males to females for the Fifth National Bank it would appear that there is a problem with gender discrimination. The average salary for Fifth National is $39,922, the average female salary is $37,210, and the average male salary is $45,505. The difference between the averages is statistically different; however, when a deeper examination of the information is conducted it is found that discrimination may not be the case. Looking first at only gender as a way to predict salary it is found that women do make less: Predicted Salary = 45.505 – 8.296Female Coefficients: | Estimates: | (Intercept) | 45.505 |

Gender | -8.296 |
Multiple R^2 | 12.01 |

This formula only shows part of what is going on with the differences in average salaries. There are other things that affect salaries as well, as would years of experience: Predicted Salary = 19.68376 + 0.98799*Years Experience + 0.13134*Years Prior - 8.08021*Female Or

Male Predicted Salary = 19.68376 + 0.98799*Years Experience + 0.13134*Years Prior Female Predicted Salary = 11.60355 + 0.98799*Years Experience + 0.13134*Years Prior Coefficients: | Estimates: | (Intercept) | 19.68376 |

Gender | -8.08021 |
Experience | 0.98799 |
Prior Exp | 0.13134 |
Multiple R^2 | 10.0865 |

For either gender and any education level, the expected increase in salary for one extra year of experience with Fifth National of $1033; the expected increase in salary for one extra year of prior experience with another bank is $362. If other confounding information is added a clearer picture of the reasons behind these differences become apparent. Education level would also affect salaries: Predicated Salary=10.0865 + 1.0329*Years Experience + 0.3622*Years Prior - 4.5013*Female + 0.1602*2 Years Education + 4.7646*3 Years Education + 7.3198*4 Years Education +11.7702*5 Years Education Coefficients: | Estimates: | (Intercept) | 10.0865 |

Gender...
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