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.
