A student would like to describe whether wage depends on gender. There are two models estimated by OLS with (Male=1 for males and 0 for female) and (Fermale =1 for females and 0 for males) included: %3D Model 1:wage, = B1 + B2 Female, + E %3D Model 2:wage, = Bml + Bm2 Female, + Emi Choose the correct sentence:

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 31E
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A student would like to describe whether wage depends on gender. There are two
models estimated by OLS with (Male =1 for males and 0 for female) and (Fermale =1 for
females and 0 for males) included:
%3!
Model 1:wage, = Bri +P2 Female, + E
Model 2:wage, = Bm1 + Bm2 Female, + Emi
%3D
%3D
Choose the correct sentence:
O a. Bm2 = -Pn
O b. Bn+ Pn= Bal
Oc. Bmi + Bm2 = B1
%3D
O d. All expressions are correct
Transcribed Image Text:A student would like to describe whether wage depends on gender. There are two models estimated by OLS with (Male =1 for males and 0 for female) and (Fermale =1 for females and 0 for males) included: %3! Model 1:wage, = Bri +P2 Female, + E Model 2:wage, = Bm1 + Bm2 Female, + Emi %3D %3D Choose the correct sentence: O a. Bm2 = -Pn O b. Bn+ Pn= Bal Oc. Bmi + Bm2 = B1 %3D O d. All expressions are correct
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