X4 is a binary variable equal to one if the employee is a woman and O if the employee is a man. You are interested in testing whether experience and education are jointly significant. Which is the restricted model? Y = Bo+BIX1+BX2 + B3X3 + BAX4 + u Y = BIX1 + B3X3 + u Y = Bo + B3X3 + B4X4 + u Y = Bo + B2X2 + B4X4 + u

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Chapter1: Combinatorial Analysis
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A1
You are examining the following model
Y = Bo + B1X1 + B2X2 + B3X3 + B4X4 + u
where
Y
is the employee salary,
X1
is the length of time employee has worked for the company,
X2
is a binary variable equal to one if the employee lives in Country A and O if the
employee lives in Country B,
X3
Transcribed Image Text:You are examining the following model Y = Bo + B1X1 + B2X2 + B3X3 + B4X4 + u where Y is the employee salary, X1 is the length of time employee has worked for the company, X2 is a binary variable equal to one if the employee lives in Country A and O if the employee lives in Country B, X3
X3
is the number of years of education, and
X4
is a binary variable equal to one if the employee is a woman and O if the employee is
a man. You are interested in testing whether experience and education are jointly
significant.
Which is the restricted model?
Y = Bo + BIX1 + B2X2 + B3X3 + B4X4 + u
Y = B,X1 + B3X3 + u
Y = Bo + B3X3 + B4X4 + u
Y = Bo + B2X2 + B4X4 + u
Transcribed Image Text:X3 is the number of years of education, and X4 is a binary variable equal to one if the employee is a woman and O if the employee is a man. You are interested in testing whether experience and education are jointly significant. Which is the restricted model? Y = Bo + BIX1 + B2X2 + B3X3 + B4X4 + u Y = B,X1 + B3X3 + u Y = Bo + B3X3 + B4X4 + u Y = Bo + B2X2 + B4X4 + u
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