Consider the following regression: Y = β0 + B1X1 + β2X2 + β3X1 · X2+ E where • Y = wage • X1 = years of education • X2 =0 if race = white 1 if race =black -Write out the interpretations of β1 ,β2 , and β3in terms of expectations. Take the expectation of Y conditional on race=white. take the expectation conditional on wage=black. Compute these expectations when education=0. -- Suppose β0 > 0, β1> 0, β2 < 0, β3 > 0. Sketch the race-specific returns to education?
Consider the following regression: Y = β0 + B1X1 + β2X2 + β3X1 · X2+ E where • Y = wage • X1 = years of education • X2 =0 if race = white 1 if race =black -Write out the interpretations of β1 ,β2 , and β3in terms of expectations. Take the expectation of Y conditional on race=white. take the expectation conditional on wage=black. Compute these expectations when education=0. -- Suppose β0 > 0, β1> 0, β2 < 0, β3 > 0. Sketch the race-specific returns to education?
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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Consider the following regression:
Y = β0 + B1X1 + β2X2 + β3X1 · X2+ E
where
• Y = wage
• X1 = years of education
Y = β0 + B1X1 + β2X2 + β3X1 · X2+ E
where
• Y = wage
• X1 = years of education
• X2 =0 if race = white
1 if race =black
-Write out the interpretations of β1 ,β2 , and β3in terms of expectations. Take
the expectation of Y conditional on race=white. take the expectation conditional on
wage=black. Compute these expectations when education=0.
1 if race =black
-Write out the interpretations of β1 ,β2 , and β3in terms of expectations. Take
the expectation of Y conditional on race=white. take the expectation conditional on
wage=black. Compute these expectations when education=0.
-- Suppose β0 > 0, β1> 0, β2 < 0, β3 > 0. Sketch the race-specific returns to education?
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