Suppose you wanted to estimate the effect of being educated on being in the labor force. You estimate a model with two variables, LF is a binary variable = 1 if the person is participating in the labor force and the variable educ measures the number of years of education a person has received. You get the following estimated regression: LF = 0.1 + 0.15educ Which of the following is the correct interpretation about the effect of an additional year of education? O A 1% increase in education increases the number of those participating in the labor force by 15 percentage points. A additional year in education increases the number of those participating in the labor force by 0.15 percentage points A additional year in education increases the number of those participating in the labor force by 0.15% An additional year of education increases the probability of participating in the labor force by 15 percentage points. O An additional year of education increases the probability of participating in the labor force by 25 percentage points. O A 1% increase in education increases the number of those participating in the labor force by 15 people.
Suppose you wanted to estimate the effect of being educated on being in the labor force. You estimate a model with two variables, LF is a binary variable = 1 if the person is participating in the labor force and the variable educ measures the number of years of education a person has received. You get the following estimated regression: LF = 0.1 + 0.15educ Which of the following is the correct interpretation about the effect of an additional year of education? O A 1% increase in education increases the number of those participating in the labor force by 15 percentage points. A additional year in education increases the number of those participating in the labor force by 0.15 percentage points A additional year in education increases the number of those participating in the labor force by 0.15% An additional year of education increases the probability of participating in the labor force by 15 percentage points. O An additional year of education increases the probability of participating in the labor force by 25 percentage points. O A 1% increase in education increases the number of those participating in the labor force by 15 people.
A First Course in Probability (10th Edition)
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ISBN:9780134753119
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Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Question
Transcribed Image Text:Suppose you wanted to estimate the effect of being educated on being in the labor force. You
estimate a model with two variables, LF is a binary variable = 1 if the person is participating in the
labor force and the variable educ measures the number of years of education a person has received.
You get the following estimated regression:
LF = 0.1 + 0.15educ
Which of the following is the correct interpretation about the effect of an additional year of
education?
O A 1% increase in education increases the number of those participating in the labor force by 15 percentage
points.
A additional year in education increases the number of those participating in the labor force by 0.15
percentage points
A additional year in education increases the number of those participating in the labor force by 0.15%
An additional year of education increases the probability of participating in the labor force by 15 percentage
points.
An additional year of education increases the probability of participating in the labor force by 25 percentage
points.
O A 1% increase in education increases the number of those participating in the labor force by 15 people.
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