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If You're Running a Multiple Regression of Employee Hours Worked i=1N( Hours ibm1 Tenure im2MBAi)N \frac{\sum _ { i = 1 } ^ { N } \left( \text { Hours } _ { i } - b - m _ { 1 } \text { Tenure } _ { i } - m _ { 2 } M B A _ { i } \right)}{N}

Question 48

Multiple Choice

If you're running a multiple regression of employee Hours Worked on Tenure (in number of years) and MBA (a binary variable equal to 1 for an employee with an MBA, 0 otherwise) , which moment conditions would be used?


A)
i=1N( Hours ibm1 Tenure im2MBAi) N \frac{\sum _ { i = 1 } ^ { N } \left( \text { Hours } _ { i } - b - m _ { 1 } \text { Tenure } _ { i } - m _ { 2 } M B A _ { i } \right) }{N} = 0
B) i=1N Hours ibm1 Temure im2 MBA i)  Tenure iN \frac{\left.\sum_{i=1}^{N} \text { Hours }_{i}-b-m_{1} \text { Temure }_{i}-m_{2} \text { MBA }_{i}\right) \text { Tenure }_{i}}{N} = 0
C)
i=1N( Hours ibm1 Tenure i) MBAiN \frac{\sum _ { i = 1 } ^ { N } \left( \text { Hours } _ { i } - b - m _ { 1 } \text { Tenure } _ { i } \right) M B A _ { i }}{N} = 0
D) The first two answer options are correct.

Correct Answer:

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