You have estimated the following equation using OLS: ŷ = 33.75 + 1.45 MALE
Where y is annual income in thousands and MALE is an indicator variable such that it is 1 for males and 0 for females.According to this model,what is the average income for males?
A)$33,750
B)$35,200
C)$32,300
D)cannot be determined

Question

Quizplus · Accepted Answer

According to the model, ŷ (predicted income) for a male would be:
ŷ= 33.75 + 1.45(1)
ŷ= 35.20
Therefore, the average income for males in this model is $35,200.

You Have Estimated the Following Equation Using OLS: ŷ =