To find the estimated difference in annual salary between a CEO in the Health Care industry and a CEO in the Financial industry, we will use the coefficients from the regression model.

Steps:

1. The base industry is Health Care, so the salary for a CEO in this industry is based only on the intercept and the experience coefficient.

   • Salary for Health Care CEO with 6 years of experience: $\text{Salary}_{\text{Health Care}} = \text{Intercept} + (\text{Experience Coefficient} \times \text{Years of Experience})$ $\text{Salary}_{\text{Health Care}} = 142712.95 + (2885.80 \times 6)$

2. For a CEO in the Financial industry, we also include the Financial industry coefficient in the calculation:

   • Salary for Financial CEO with 6 years of experience: $\text{Salary}_{\text{Financial}} = \text{Intercept} + (\text{Experience Coefficient} \times \text{Years of Experience}) + \text{Financial Coefficient}$ $\text{Salary}_{\text{Financial}} = 142712.95 + (2885.80 \times 6) - 19574.36$

3. The estimated difference in salary between the two CEOs is the difference between the two equations: $\text{Difference} = \text{Salary}_{\text{Health Care}} - \text{Salary}_{\text{Financial}}$

Let's calculate this step by step.The estimated difference in annual salary between a CEO in the Health Care industry and a CEO in the Financial industry, both with 6 years of experience, is $19,574.36.

Do you have any questions or want further details on this calculation?

Here are some related questions you might find useful:

1. How do dummy variables affect the interpretation of a regression model?
2. What is the meaning of the intercept in a regression model?
3. How can you interpret the t-statistics and p-values in the regression output?
4. How would the estimated salary difference change if the CEO had 10 years of experience?
5. How do you interpret the negative coefficient for the Financial industry?

Tip: The intercept in a regression model typically represents the estimated outcome when all predictor variables are equal to zero.