Your textbook discussed the regression model when X is a binary variable
Yi = β0 + βiDi + ui,i = 1,... ,n
Let Y represent wages,and let D be one for females,and 0 for males.Using the OLS formula for the intercept coefficient,prove that is the average wage for males.

Question

Your textbook discussed the regression model when X is a binary variable
Yi = β0 + βiDi + ui,i = 1,... ,n
Let Y represent wages,and let D be one for females,and 0 for males.Using the OLS formula for the intercept coefficient,prove that  is the average wage for males.

Quizplus · Accepted Answer

The Answer of Your textbook discussed the regression model when X is a binary variable
Yi = β0 + βiDi + ui,i = 1,... ,n
Let Y represent wages,and let D be one for females,and 0 for males.Using the OLS formula for the intercept coefficient,prove that  is the average wage for males.

Your Textbook Discussed the Regression Model When X Is a Binary