Suppose you are interested in estimating the causal effect of having a Master's degree in Eco- nomics on earnings among individuals who majored in Economics. You have a sample of 1,500 individuals who majored in Economics. Which of the following statements is correct: O A consistent estimate of this causal effect can be obtained by comparing average earnings of sampled individuals with and without a Master's degree in Economics O A consistent estimate of this causal effect can be obtained by regressing earnings on a dummy variable indicating whether or not an individual in the sample has a Master's degree in Economics O A consistent estimate of this causal effect can be obtained by regressing earnings on 1) a dummy variable indicating whether an individual in the sample has a Master's degree in Economics, 2) gender, 3) age, 4) type of occupation, 5) state of residence O None of the above
Suppose you are interested in estimating the causal effect of having a Master's degree in Eco- nomics on earnings among individuals who majored in Economics. You have a sample of 1,500 individuals who majored in Economics. Which of the following statements is correct: O A consistent estimate of this causal effect can be obtained by comparing average earnings of sampled individuals with and without a Master's degree in Economics O A consistent estimate of this causal effect can be obtained by regressing earnings on a dummy variable indicating whether or not an individual in the sample has a Master's degree in Economics O A consistent estimate of this causal effect can be obtained by regressing earnings on 1) a dummy variable indicating whether an individual in the sample has a Master's degree in Economics, 2) gender, 3) age, 4) type of occupation, 5) state of residence O None of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose you are interested in estimating the causal effect of having a Master's degree in Eco-
nomics on earmings among individuals who majored in Economics. You have a sample of 1,500
individuals who majored in Economics. Which of the following statements is correct:
O A consistent estimate of this causal effect can be obtained by comparing average earnings of sampled individuals with and without a
Master's degree in Economics
O A consistent estimate of this causal effect can be obtained by regressing earnings on a dummy variable indicating whether or not an
individual in the sample has a Master's degree in Economics
O A consistent estimate of this causal effect can be obtained by regressing earnings on 1) a dummy variable indicating whether an
individual in the sample has a Master's degree in Economics, 2) gender, 3) age, 4) type of occupation, 5) state of residence
O None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd21df2fd-3ca4-4793-9ac6-aa7bb2719dd7%2F42e23ad4-4fd7-4ca3-9d0c-ef9ac6e0c819%2Fvq10fu_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose you are interested in estimating the causal effect of having a Master's degree in Eco-
nomics on earmings among individuals who majored in Economics. You have a sample of 1,500
individuals who majored in Economics. Which of the following statements is correct:
O A consistent estimate of this causal effect can be obtained by comparing average earnings of sampled individuals with and without a
Master's degree in Economics
O A consistent estimate of this causal effect can be obtained by regressing earnings on a dummy variable indicating whether or not an
individual in the sample has a Master's degree in Economics
O A consistent estimate of this causal effect can be obtained by regressing earnings on 1) a dummy variable indicating whether an
individual in the sample has a Master's degree in Economics, 2) gender, 3) age, 4) type of occupation, 5) state of residence
O None of the above
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