Question
5. (Dummy) Consider the regression model WAGE=B1+ B2S+ B3S F+u, where WAGE is an individual's daily wage, S is years of schooling, and F
5. (Dummy) Consider the regression model WAGE=B1+ B2S+ B3S F+u, where WAGE is an individual's daily wage, S is years of schooling, and F is 1 if the individual is female, 0 if the individual is male. Suppose the estimated coefficients are all different from zero. If we plot (1) the predicted relation between wage and school for females, (2) the predicted relation between wage and school for males, then plot (1) and (2) have (a) different slopes and different intercepts. (b) the same slope and the same intercept. (c) different slopes and the same intercept. (d) the same slope and different intercepts. Answer: (c)
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Get StartedRecommended Textbook for
Advanced Engineering Mathematics
Authors: Erwin Kreyszig
10th edition
470458364, 470458365, 978-0470458365
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