In a simple linear regression model, wage = + male + u, where male is a binary variable (1 if a person is male, and 0 otherwise), is the difference in the average wage between males and non-males.

Question

In a simple linear regression model, wage =  +  male + u, where male is a binary variable (1 if a person is male, and 0 otherwise), is the difference in the average wage between males and non-males.

Quizplus · Accepted Answer

The coefficient of the binary variable "male" (11eb6b8a_02d1_e1ae_bf83_694edae4265a_TB8272_11) represents the difference in the average wage between males and non-males in the simple linear regression model.

In a Simple Linear Regression Model, Wage =