Your textbook discussed the regression model when X is a binary variable
Y_i = ?₀ + ?_iD_i + u_i, 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 $\widehat { \beta 0 }$ is the average wage for males.

Question

Your textbook discussed the regression model when X is a binary variable
Y_i = ?₀ + ?_iD_i + u_i, 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

\widehat { \beta 0 }

is the average wage for males.

Quizplus · Accepted Answer

The Answer of Your textbook discussed the regression model when X is a binary variable Y_i = ?₀ + ?_iD_i + u_i, 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 $\widehat { \beta 0 }$ is the average wage for males.

Your Textbook Discussed the Regression Model When X Is a Binary