Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

N4 In dataset of a cross-section of cars advertised on an online platform, log price is regressed on a binary variable that is 1 if

N4

In dataset of a cross-section of cars advertised on an online platform, log price is regressed on a binary variable that is 1 if the ad comes from a dealer and 0 if it comes from the owner of the car. The slope coefficient is 0.1. When we add the age of the car to the regression, the slope coefficient on the same binary variable is 0.05. Interpret both numbers.

In the previous example the coefficient on the age of cars is -0.1. Are dealer-advertised cars older or younger on average? By how much?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Principles Applications and Tools

Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez

9th edition

978-0134089027, 134089022, 978-0134420684

More Books

Students also viewed these Economics questions

Question

Write a complete c program

Answered: 1 week ago

Question

3. What values would you say are your core values?

Answered: 1 week ago