Suppose that you have a random sample of 250 individuals. Suppose further that you can divide...

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Suppose that you have a random sample of 250 individuals. Suppose further that you can divide your sample into two sub-samples according to the position in occupation, i.e., manager and security staff. You believe that you can express annual income function for security staff as Y=f(E,R) T₁ = 115 for manager as T₂ = 135 : Y=f(E.R.S) where E: years of education S: number of workers he/she manages R: regions he/she lives in (Aegean and Marmara or Central Anatolia) a. Set up a regression model for the whole sample using dummy variables which allows for all slope coefficients and intercept term to vary according to region. b. Set up another model for the whole sample which allows for only the coefficient of education to vary according to region. Suppose that you have a random sample of 250 individuals. Suppose further that you can divide your sample into two sub-samples according to the position in occupation, i.e., manager and security staff. You believe that you can express annual income function for security staff as Y=f(E,R) T₁ = 115 for manager as T₂ = 135 : Y=f(E.R.S) where E: years of education S: number of workers he/she manages R: regions he/she lives in (Aegean and Marmara or Central Anatolia) a. Set up a regression model for the whole sample using dummy variables which allows for all slope coefficients and intercept term to vary according to region. b. Set up another model for the whole sample which allows for only the coefficient of education to vary according to region.

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