Solved

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Question 10

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In examining the determinants of income,data were collected regarding the characteristics of 45 adults,and the regression Y = β0 + β1X1 + β2X2 + β3X3 +ε was used,where Y is the annual income (in thousands of dollars) ,X1 is the person's age,X2 is his/her years of education,and X3 is a dummy variable = 1 if the adult is female.
-If you get THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: In examining the determinants of income,data were collected regarding the characteristics of 45 adults,and the regression Y = β<sub>0</sub> + β<sub>1</sub>X<sub>1</sub> + β<sub>2</sub>X<sub>2</sub> + β<sub>3</sub>X<sub>3</sub> +ε was used,where Y is the annual income (in thousands of dollars) ,X<sub>1</sub> is the person's age,X<sub>2</sub> is his/her years of education,and X<sub>3</sub> is a dummy variable = 1 if the adult is female. -If you get   = 26.3 + 1.38x<sub>1</sub> + 2.98x<sub>2</sub> - 0.76x<sub>3</sub> when you run the regression,how would you interpret the coefficient on gender? A) A woman earns 76% of a man's earnings. B) For each additional year of education,a woman earns $760 less than a man. C) For each additional year in the age,a woman earns $760 less than a man. D) On average,a woman earns $760 less than a man. = 26.3 + 1.38x1 + 2.98x2 - 0.76x3 when you run the regression,how would you interpret the coefficient on gender?


A) A woman earns 76% of a man's earnings.
B) For each additional year of education,a woman earns $760 less than a man.
C) For each additional year in the age,a woman earns $760 less than a man.
D) On average,a woman earns $760 less than a man.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents