11.58 Compensation and human capital.
A study of bank branch manager compensation collected data on the salaries of 82 managers at branches of a large eastern U.S. bank.15 Multiple regression models were used to predict how much these branch managers were paid. The researchers examined two sets of explanatory variables. The first set included variables that measured characteristics of the branch and the position of the branch manager. These were number of branch employees, a variable constructed to represent how much competition the branch faced, market share, return on assets, an efficiency ranking, and the rank of the manager. A second set of variables was called human capital variables and measured characteristics of the manager. These were experience in industry, gender, years of schooling, and age. For the multiple regression using all the explanatory variables, the value of was 0.77. When the human capital variables were deleted, fell to 0.06. Test the null hypothesis that the coefficients for the human capital variables are all zero in the model that includes all the explanatory variables. Give the test statistic with its degrees of freedom and -value, and give a short summary of your conclusion in nontechnical language.