You have collected a sub-sample from the Current Population Survey for the western region of the United States. Running a regression of average hourly earnings (ahe) on an intercept only, you get the following result: 1. (a). Interpret the result. = 0 = 18.58 (b). You decide to include a single explanatory variable without an intercept. The binary variable DFemme takes on a value of "1" for females but is "0" otherwise. The regression result changes as follows: = 1xDFemme = 16.50×DFemme What is the interpretation now? (c). You generate a new binary variable DMale by subtracting DFemme from 1, and run the new regression: = 2xDMale = 20.09xDMale What is the interpretation of the coefficient now? (d). After thinking about the above results, you recognize that you could have generated the last two results either by running a regression on both binary variables, or on an intercept and one of the binary

You have collected a sub-sample from the Current Population Survey for the western region of the United States. Running a regression of average hourly earnings (ahe) on an intercept only, you get the following result: 1. (a). Interpret the result. = 0 = 18.58 (b). You decide to include a single explanatory variable without an intercept. The binary variable DFemme takes on a value of "1" for females but is "0" otherwise. The regression result changes as follows: = 1xDFemme = 16.50×DFemme What is the interpretation now? (c). You generate a new binary variable DMale by subtracting DFemme from 1, and run the new regression: = 2xDMale = 20.09xDMale What is the interpretation of the coefficient now? (d). After thinking about the above results, you recognize that you could have generated the last two results either by running a regression on both binary variables, or on an intercept and one of the binary

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

i need the answer quickly
Don’t do question 9, just look at the info and chart on question 9 and apply it to question 10 in the next image.
Define the term Expenses?
when we start a project which analysis is required? How we know which project is environmentally beneficial?
Given the time value of money, is it ethical not to pay interest? How does the amount or duration of the loan matter?
What is the AVC and MC?
Prepare a flow chart for a typical family of 4 (3 drivers), taking a two-week (Monday is 1st-14th is a Sunday) vacation driving from New York to Orlando in August. Your return to workday is 15th of the month which is a Monday. Discuss areas of concerned revealed by the flow chart.
What are the five main types of engineering economic decisions?
What are the ethical issues that could be encountered when running an e-commerce platform?
can you do part b, c, d and e i can hse 4 questions for it