Assume one has estimated a regression equation of salary(dependent variable) against years of education independentvariable). How would one go about expanding the regression model toalso estimate the gender effect (i.e., the average differencebetween male and female salary, given the same level of education?Explain how you would construct the additional variable and how youwould interpret it, given how you construct it. How would youconstruct a hypothesis test to determine if the estimatedgender-based differential is statistically significant?
