We estimate the following regression model to predict wage of employees in a firm. Exp is years of experience, male is a dummy variable that equals 1 if the employee is male. wage Во + Bехр + Вzтale + Bgexpх male %3D If the true relationship between the variables are as the following plot suggests, what do you expect the signs (positive or negative) of ß1, B2, and ß3 to be? Explain. wage 4 male=1 male=0 experience

MATLAB: An Introduction with Applications
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We estimate the following regression model to predict wage of employees in a firm. Exp is years of
experience, male is a dummy variable that equals 1 if the employee is male.
wage %3D Bo + Bехр + Bzmale + Bзехp х таle
If the true relationship between the variables are as the following plot suggests, what do you expect
the signs (positive or negative) of ß1, B2, and B3 to be? Explain.
wage +
male=1
male=0
experience
Transcribed Image Text:We estimate the following regression model to predict wage of employees in a firm. Exp is years of experience, male is a dummy variable that equals 1 if the employee is male. wage %3D Bo + Bехр + Bzmale + Bзехp х таle If the true relationship between the variables are as the following plot suggests, what do you expect the signs (positive or negative) of ß1, B2, and B3 to be? Explain. wage + male=1 male=0 experience
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