Suppose you are estimating a wage regression, where salary is the dependent variable and age, years of education and a dummy variable for male are your independent variables. You are interested in measuring how salary differs between those who have at least a college education with those who have less than a college education. If a person is considered as having a college education when she has more than 12 years of education, how can you measure the difference in salary between college and non-college educated individuals? Select one: a. Multiply coefficient for years of education in original regression by 12 b. Re-estimate model replacing years of education with a dummy variable for college O c. Re-estimate model replacing years of education with a dummy variable for college and one for no college O d. Re-estimate model interacting years of education with a dummy variable for college e. Calculate the difference in predicted salary between an individual with 14 years of education and one with 7 years of education
Suppose you are estimating a wage regression, where salary is the dependent variable and age, years of education and a dummy variable for male are your independent variables. You are interested in measuring how salary differs between those who have at least a college education with those who have less than a college education. If a person is considered as having a college education when she has more than 12 years of education, how can you measure the difference in salary between college and non-college educated individuals? Select one: a. Multiply coefficient for years of education in original regression by 12 b. Re-estimate model replacing years of education with a dummy variable for college O c. Re-estimate model replacing years of education with a dummy variable for college and one for no college O d. Re-estimate model interacting years of education with a dummy variable for college e. Calculate the difference in predicted salary between an individual with 14 years of education and one with 7 years of education
Chapter4: Linear Functions
Section4.3: Fitting Linear Models To Data
Problem 34SE: For the following exercises, consider this scenario: The profit of a company decreased steadily...
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Transcribed Image Text:Suppose you are estimating a wage regression, where salary is the dependent
variable and age, years of education and a dummy variable for male are your
independent variables. You are interested in measuring how salary differs between
those who have at least a college education with those who have less than a college
education. If a person is considered as having a college education when she has
more than 12 years of education, how can you measure the difference in salary
between college and non-college educated individuals?
Select one:
a. Multiply coefficient for years of education in original regression by 12
O b. Re-estimate model replacing years of education with a dummy variable for
college
c. Re-estimate model replacing years of education with a dummy variable for
college and one for no college
O d. Re-estimate model interacting years of education with a dummy variable for
college
e. Calculate the difference in predicted salary between an individual with 14
years of education and one with 7 years of education
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