Economics keeps track of its majors' starting salaries. Does taking econometrics affect starting salary? Let SAL...

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Economics keeps track of its majors' starting salaries. Does taking econometrics affect starting salary? Let SAL salary in Turkish lira, GPA grade point average on a 4.0 scale, METRICS = 1 if student took econometrics, and METRICS = 0 otherwise. Using the information on 50 recent graduates, we obtain the estimated regression: i) ii) iii) SAL= 24,200 + 1,643 GPA; + 5,033 METRICS; (1078) (352) (456) (1) Interpret the estimated regression. How would you modify the equation to see whether women had lower starting salaries than men? (Hint: Define a dummy variable FEMALE = 1, if female; zero otherwise.) How would you modify the equation to see if the value of econometrics was the same for men and women? Economics keeps track of its majors' starting salaries. Does taking econometrics affect starting salary? Let SAL salary in Turkish lira, GPA grade point average on a 4.0 scale, METRICS = 1 if student took econometrics, and METRICS = 0 otherwise. Using the information on 50 recent graduates, we obtain the estimated regression: i) ii) iii) SAL= 24,200 + 1,643 GPA; + 5,033 METRICS; (1078) (352) (456) (1) Interpret the estimated regression. How would you modify the equation to see whether women had lower starting salaries than men? (Hint: Define a dummy variable FEMALE = 1, if female; zero otherwise.) How would you modify the equation to see if the value of econometrics was the same for men and women?

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The image contains a question related to econometrics focused on the relationship between a college majors starting salary and their GPA as well as whether they took econometrics as a subject The esti... View the full answer