Multiple Choice
The following simple model is used to determine the annual savings of an individual on the basis of his annual income and education. Savings = β0 + 0 Edu + β1Inc + u
The variable 'Edu' takes a value of 1 if the person is educated and the variable 'Inc' measures the income of the individual.
Refer to the model above. The benchmark group in this model is _____.
A) the group of educated people
B) the group of uneducated people
C) the group of individuals with a high income
D) the group of individuals with a low income
Correct Answer:

Verified
Correct Answer:
Verified
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