2 Suppose we are interested in studying the relationship between hours Marks worked (1) and marital status. There are three possible categories for marital status in the data - single, married and divorced. Consider the following two regression models. Model A: Hi - B1 + B2 Xi + ei, where X is defined to be equal to 0 if an individual is single, 1 if married and 2 if divorced. Model B: Hi = B1 + B2 Si + B3 Mi + er, where S is equal to 1 if an individual is single and zero otherwise, and M is equal to 1 if an individual is married and zero otherwise. Which of these two models would you prefer and why? (2 marks) B U ABC X2 X2 = E E E 123 O C 13 of 16