Consider the following model Y i = 1 + 2 D i + X i
Question:
Consider the following model
Yi = α1 + α2Di + βXi + ui
where Y = annual salary of a college professor
X = years of teaching experience
D = dummy for gender
Consider three ways of defining the dummy variable.
a. D = 1 for male, 0 for female.
b. D = 1 for female, 2 for male.
c. D = 1 for female, −1 for male.
Interpret the preceding regression model for each dummy assignment. Is one method preferable to another? Justify your answer.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
a Male Professor EY i 1 2 X i Female Professor EY i 1 X i Holdi...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The following selected transactions were completed during January between McGowan Company and Xi Co.: Jan. 1. McGowan Company sold merchandise on account to Xi Co., $28,600, terms FOB destination,...
-
Consider two gambles, each with outcomes $10, $20, $30, and $40. Gamble 1 has probabilities for these outcomes and gamble 2 has probabilities and. Suppose that Gamble 2 stochastically dominates...
-
Public policy makers are often pressured to reduce class size in public schools in order to raise student achievement. A: One way to model the production process for student achievement is to view...
-
Why do most cities in the United States now have more radios but fewer radio repair shops than they did in 1960?
-
A company is considering a 5-year project to open a new product line. A new machine with an installed cost of $110,000 would be required to manufacture their new product, which is estimated to...
-
Show that for a 2D flow or plane confined to the \((x, y)\) plane only the \(z\)-component of the vorticity is non-zero. This component, \(\omega_{z}\), is simply abbreviated as \(\omega\) and...
-
Discuss the advantage of using operational deflection shape measurement.
-
Holmes Corporation has filed a voluntary petition with the bankruptcy court in hope of reorganizing. A statement of financial affairs has been prepared for the company showing these debts:...
-
7. Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe quadcopter for $95. Scotty purchases the standard quadcopter for $45 and the deluxe quadcopter for $70....
-
Sulphur dioxide is emitted at a rate of 2kg/s from the top of a chimney that is 120m high. The plume initially rises vertically a further 10m above the chimney exit, before being convected...
-
Refer to the quarterly appliance sales data given in the following table. Consider the following model: Sales i = α 1 + α 2 D 2i + α 3 D 3i + α...
-
Propose an efficient synthesis for the following transformation. Take special notice of the fact that the starting material has a six-membered ring while the product has a fivemembered ring.
-
Suppose the government imposes the following production tax on one perfectly competitive firm in an industry: For each unit the firm produces, it must pay $1 to the government. Will consumers in this...
-
The Prepaid Rent account had a $6,800 debit balance at December 31 before adjusting for the costs of expired prepaid rent. An analysis of the rental agreement showed that $5,800 of prepaid rent had...
-
The year ended 3 0 June 2 0 2 3 : 1 . Contributed equity on 1 July 2 0 2 2 consisted of 1 million ordinary shares fully paid to $ 2 each . Other equity account balances on 1 July 2 0 2 2 were:...
-
Gordon's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $640,000 and a contribution margin of 80% of revenues. Gordon feels like he's in a giant...
-
Current Year Previous Year Sales $4,000,000 $3,600,000 Cost of goods sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative expenses 520,000 360,000 240,000 Income tax expense...
-
LM LTD . Follows IFRS and it's accounting year ends December 3 1 . The commpany sells each unit for $ 1 5 0 0 and comes with a standard basic 1 year warranty. The cost of the warranty is estimated to...
-
Give the appropriate form of the partial fraction decomposition for the following functions. 2x? + 3 (x 8x + 16)(x + 3x + 4)
-
Find the inverse, if it exists, for the matrix. -1
-
Choose one of the common decision-making biases that you have either personally experienced or which you are guilty of and describe the following: (1) what error was involved, (2) what were the...
-
Ask the class members to think of places they have worked or organizations they have been associated with. They should identify decisions that they observed being made by people within the...
-
Which ethical viewpoint do you think is the best? Describe the viewpoint and explain your choice.
-
9- Assume that printer interrupt priority: 2, disk interrupt priority:4, serial line interrupt priority: 6, Ethernet interrupt priority: 5. Determine the order of interrupt services according to: A...
-
4- Assume that printer interrupt priority: 2, disk interrupt priority:4, Ethernet interrupt priority: 5. A user program starts at t = 0 and takes 40 seconds to complete. At t = 10, a disk interrupt...
-
Robbie is a 3 year old boy in the bur oak room at little.ly early learning centre. You have been one of robbies educators for the past two weeks. You and your colleagues have been concerned about...
Study smarter with the SolutionInn App