Multiple Choice
Suppose we are interested in the effect of gender on income and estimate a model that includes a dummy variable for men. If we instead estimate a model that includes a dummy variable for women,
A) The coefficient on the dummy variables will be exactly the same.
B) The coefficient on the dummy variables will differ across models, but the estimated difference of means between men and women will not change.
C) The fit of the model will change.
D) We will get different answers when testing a null hypothesis that there is no gender effect.
Correct Answer:

Verified
Correct Answer:
Verified
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