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Applying The Variables, Bigcity, And Belavg

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By applying the variables “bigcity” and “belavg” for the interaction (bigbelavg=bigcity*belavg) (see: Exhibit 7), we should be able to examine any differences in hourly wage for less physically attractive people that the geographical location could play a factor in. Much like previous failed interaction variables, the “bigbelavg” variable does not add any new interesting developments to the model in terms of change in coefficients or statistical significance levels, other than the now “common” changes for “belavg” (drop in significance level), “service” (now statistically significant) and “smllcity” (drop in significance level). Also, like “fembelavg”, “belavgblack”, “belavgmarr” and “servbelavg”, “bigbelavg” is not statistically significant and therefore one can conclude that there is not an established, statistically significant, difference in disadvantage for less physically attractive individuals in big cities compared to their counterparts outside of the big cities. In addition, the adjusted R-squared is still lower than in the original model. Once again, the Wald’s test (see: Exhibit 7.1) shows that the model is better of without the interaction variable and recommends omitting “bigbelavg”.
In light of these multiple “failed” interaction variables and dismissals of expectations, the next step is evaluating whether the baseline model is actually the best linear unbiased estimator or if there is better models that can be generated, perhaps by including previously

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