Question
A study tests the effect of earning a Master's degree on the salaries of professionals. Suppose that the salaries of the professionals (S i )
A study tests the effect of earning a Master's degree on the salaries of professionals. Suppose that the salaries of the professionals (Si) are not dependent on any other variables. Let Di be a variable which takes the value 0 if an individual has not earned a Master's degree, and a value 1 if they have earned a Master's degree
Suppose that a random sample of 160 individuals suggests that professionals without a Master's degree earn an average salary of $61,000 per annum, while those with a Master's degree earn an average salary of $80,000 per annum
1) The OLS estimate of the coefficient B1 will be $ _________ and that of B0 will be $ __________
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