Suppose Y is the annual income, X is the number of years of education, and D is a dummy variable equaling 1 when a person is male. In a linear regression of Y on X and D, we estimate a coefficient of 3 for X and -4 for D. Then: Group of answer choices The effect of being female is to lower income by 4. The effect of being male is to raise income by 4, holding education constant. The effect of being female is to raise income by 4, holding education constant. The effect of being female is to raise income by 4.

Suppose Y is the annual income, X is the number of years of education, and D is a dummy variable equaling 1 when a person is male. In a linear regression of Y on X and D, we estimate a coefficient of 3 for X and -4 for D. Then: Group of answer choices The effect of being female is to lower income by 4. The effect of being male is to raise income by 4, holding education constant. The effect of being female is to raise income by 4, holding education constant. The effect of being female is to raise income by 4.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 5E

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