Author Question: Imagine you regressed earnings of individuals on a constant, a binary variable (Male) which takes on ... (Read 401 times)

CBme

  • Hero Member
  • *****
  • Posts: 548
Imagine you regressed earnings of individuals on a constant, a binary variable (Male) which takes on the value 1 for males and is 0 otherwise, and another binary variable (Female) which takes on the value 1 for females and is 0 oth
 
  Because females typically earn less than males, you would expect
  A) the coefficient for Male to have a positive sign, and for Female a negative sign.
  B) both coefficients to be the same distance from the constant, one above and the other below.
  C) none of the OLS estimators to exist because there is perfect multicollinearity.
  D) this to yield a difference in means statistic.

Question 2

The guidelines for whether or not to include an additional variable include all of the following, with the exception of
 
  A) providing full disclosure representative tabulations of the results.
  B) testing whether additional questionable variables have nonzero coefficients.
  C) determining whether it can be measured in the population of interest.
  D) being specific about the coefficient or coefficients of interest.



lindahyatt42

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

Answer: C

Answer to Question 2

Answer: C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

For a complete list of videos, visit our video library