Suppose you are interested in examining the determinants of earnings.You have information on the age of the individual as well as their level of education: high school graduate,college graduate or graduate degree.Let Y = earnings,X₁= age,X₂ = 1 if the person has only a high school degree and 0 otherwise,X₃ = 1 if the person has a college degree and 0 otherwise,X₄ = 1 if the person has a graduate degree and 0 otherwise.Which of the following model specifications would work for this data? A)Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ B)Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ C)Y = D)Y = β₁ + β₂ + β₃ + β₄ + X₁+ X₂ + X₃ + X₄

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The Answer of Suppose you are interested in examining the determinants of earnings.You have information on the age of the individual as well as their level of education: high school graduate,college graduate or graduate degree.Let Y = earnings,X₁= age,X₂ = 1 if the person has only a high school degree and 0 otherwise,X₃ = 1 if the person has a college degree and 0 otherwise,X₄ = 1 if the person has a graduate degree and 0 otherwise.Which of the following model specifications would work for this data? A)Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ B)Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ C)Y = D)Y = β₁ + β₂ + β₃ + β₄ + X₁+ X₂ + X₃ + X₄

Suppose You Are Interested in Examining the Determinants of Earnings