5. Interpreting dummy variables for multiple categories when the dependent variable is log(y) Consider the following estimated model, where the dependent variable is the log of the hourly wage: log (wage) 0.417 + 0.297 female + 0.053 married + 0.08 educ + 0.029 exper - 0.001 exper² + 0.032 tenure - 0.001 tenure² The coefficient of married implies that the so-called marriage premium is estimated to be about Suppose a regression model has different intercepts for seven groups or categories. Then to ensure the quality of the regression model, we need to include dummy variables in the model,. an intercept.
5. Interpreting dummy variables for multiple categories when the dependent variable is log(y) Consider the following estimated model, where the dependent variable is the log of the hourly wage: log (wage) 0.417 + 0.297 female + 0.053 married + 0.08 educ + 0.029 exper - 0.001 exper² + 0.032 tenure - 0.001 tenure² The coefficient of married implies that the so-called marriage premium is estimated to be about Suppose a regression model has different intercepts for seven groups or categories. Then to ensure the quality of the regression model, we need to include dummy variables in the model,. an intercept.
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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Transcribed Image Text:5. Interpreting dummy variables for multiple categories when the dependent variable is log(y)
Consider the following estimated model, where the dependent variable is the log of the hourly wage:
log (wage) 0.417 + 0.297 female + 0.053 married + 0.08 educ + 0.029 exper - 0.001 exper² + 0.032 tenure
-
0.001 tenure²
The coefficient of married implies that the so-called marriage premium is estimated to be about
Suppose a regression model has different intercepts for seven groups or categories. Then to ensure the quality of the regression model, we need to
include
dummy variables in the model,
an intercept.
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