7. Imagine you regress earnings of individuals on a constant, a binary variable("Male") which takes on the value 1 for males and is 0 otherwise, and another binaryvariable ("Female ") which takes on the value 1 for females and is 0 otherwiseBecause females typically earn less than males, you would expecta) the coefficient for Male to have a positive sign, and for Female a negative signb) the coefficient for Male to have a negative sign, and for Female a positive sign.c) none of the OLS estimators to exist because there is perfect multicollinearity.d) both the coefficient for Male and that for Female to have positive signs

Here multicollinearity will exists between the two independent variable i.e, Male and Female. As per…

Answered: 7. Imagine you regress earnings of…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Suppose the entire cola industry produces only two colas. Given that a person last purchased cola 1, there a 70% chance that her next purchase will be cola 1. Given that a person last purchased cola 2, there is an 75% chance that her next purchase will be cola 2. Suppose that each customer makes one purchase of cola during any week (52 weeks=1 year). Suppose there are 150 million customers. One selling unit of cola costs the company $0.5 to produce and is sold for $2. For $200 million per year, Britney Spears (by an advertising song) guarantees to decrease from 30% to 15% the fraction of cola 1 customers who switch to cola 2 after a purchase. Should the company that makes cola 1 hire Britney Spears?
Do a and b.
6. A small company can employ 3 workers. Each worker independently stays on the job for an exponentially distributed time with a mean of one year and then quits. When a worker quits, it takes the company an exponentially distributed time with a mean of 1/10 of a year to hire a replacement for that worker (independently of how long it takes to replace other workers). If the company takes in $1000 per day in revenue when it has 3 workers, $800 per day when it has 2 workers, and $500 per day when it has 0 or 1 workers, what is the company's long-run average daily revenue?
116. For a device to work properly, three subsystems of the device must all function properly. To increase the reliability of the device, spare units may be added to each system. It costs 100 TL to add a spare unit to system 1, 300 TL to system 2, and 200 TL to system 3. As a function of the number of added spares (a maximum of two spares may be added to each system), the probability that each system will work is given in Table. Use dynamic programming to maximize the probability that the device will work properly, given that 600 TL is available for spare units. Identify and explain decision variables, stages, states and formulate a recursion to design the device with optimal reliability. Probability that a system works system 1 Number of spares system 3 system 2 .60 .85 .70 1 .90 .85 .90 2 .95 .95 .98 117. You are planning on moving to a new house. You need to move n items of size aj , j-1,2,.,.n. You have bought m boxes (box i has size bi , i- 1,2,.,m). You need to rent a truck that…
A project requires an initial outlay of $92000 and produces a return of $30000 at the end of year 1, $40000 at the end of year 2, and $42xyz at the end of year 3, where x, y, z are the last three digits of your student code (for example: if a student code is 17071365 then x = 3, y = 6, z = 5 and $42xyz=$42365). a/ Use the trial-and-error method or another appropriate method to determine the internal rate of return IRRof the project (express IRR in percentage, rounded to one decimal place); b/ Find the net present value NPV of the project if the market rate r is equal to the value of IRR as found above, then give a comment.

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