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Consider the following regression estimates (XM4): Linear regression Number of obs 1, 260 F (1, 1258) 303.54 Prob > F 0. 000. R-squared = 0
Consider the following regression estimates (XM4): Linear regression Number of obs 1, 260 F (1, 1258) 303.54 Prob > F 0. 000. R-squared = 0 . 1915 Root MSE 11 . 53478 Robust lwage Coefficient std. err. t P>| t| [95% conf. interval] female -. 5466561 . 0313767 -17 .42 0.000 -. 6082124 -. 4850997 _cons 1. 84796 . 0188221 98. 18 0. 000 1. 811034 1. 884886 where . /wage is the natural logarithm of wage, . female = 1 if the person is female and 0 if the person is male. There are only male and females in this sample (no other genders). a) Interpret the female coefficient. b) Imagine you would use the same dataset and regress /wage on male, where mole is a dummy variable that is 1 when the person is male and 0 if the person is female. In this regression, what will be the value of the male coefficient? () Using the same data as in a) and b), what happens if you regress /wage on male and female? Why? (Hint: refer to a Multi Linear Regression assumption in your answer)
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