individuals, their age, and their gender. You have read in the news that women cents to the $1 that men earn. To test this hypothesis, you first regress earnings constant and a binary variable, which takes on a value of 1 for females and is 0 The results were: rn = 570.70 - 170.72 ×Female,R²=0.084, SER = 282.12.
individuals, their age, and their gender. You have read in the news that women cents to the $1 that men earn. To test this hypothesis, you first regress earnings constant and a binary variable, which takes on a value of 1 for females and is 0 The results were: rn = 570.70 - 170.72 ×Female,R²=0.084, SER = 282.12.
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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Please answer the last part of the ques

Transcribed Image Text:3) A subsample from the Current Population Survey is taken, on weekly earnings of
individuals, their age, and their gender. You have read in the news that women make 70
cents to the $1 that men earn. To test this hypothesis, you first regress earnings on a
constant and a binary variable, which takes on a value of 1 for females and is 0 otherwise.
The results were:
Earn = 570.70 - 170.72 ×Female,R2=0.084, SER = 282.12.
(9.44) (13.52)
There are 850 females in your sample and 894 males.
a) What is the mean earnings of males and females in this sample?
b) Interpret the coefficient of Female.
c) What is the wage gap?
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