Question
Suppose you have the following estimated score equation: log(score) = 6 - 0.27 notstudy, where notstudy is a dummy that is equal to 1 if
Suppose you have the following estimated score equation:
log(score) = 6 - 0.27 notstudy, where notstudy is a dummy that is equal to 1 if one doesn't study, and 0 otherwise.
Suppose instead you want to estimate log(score) = x0 study + x1 notstudy + u, where study is a dummy that is 1 if one study and 0 otherwise. In this regression, there is no constant term, so it does not matter that study and notstudy add up to one.
Based on your interpretation of the first estimated regression, what are the OLS estimates for x0 and x1 in the second regression?
a) x0 = 4.73 and x1 = 6
b) x0 = 6 and x1 = 4.73
c) x0 = 6.27 and x1 = 6
d) x0 = 6 and x1 = 6.27
Please explain your reason as well!
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