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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Question 217

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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In examining the determinants of income,data were collected regarding the characteristics of 45 adults,and the regression Y = β0 + β1X1 + β2X2 + β3X3 +ε was used,where Y is the annual income (in thousands of dollars) ,X1 is the person's age,X2 is his/her years of education,and X3 is a dummy variable = 1 if the adult is female.
-If you get THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: In examining the determinants of income,data were collected regarding the characteristics of 45 adults,and the regression Y = β<sub>0</sub> + β<sub>1</sub>X<sub>1</sub> + β<sub>2</sub>X<sub>2</sub> + β<sub>3</sub>X<sub>3</sub> +ε was used,where Y is the annual income (in thousands of dollars) ,X<sub>1</sub> is the person's age,X<sub>2</sub> is his/her years of education,and X<sub>3</sub> is a dummy variable = 1 if the adult is female. -If you get   = 26.3 + 1.38x<sub>1</sub> + 2.98x<sub>2</sub> - 0.76x<sub>3</sub> when you run the regression,how would you interpret the coefficient on gender? A) A woman earns 76% of a man's earnings. B) For each additional year of education,a woman earns $760 less than a man. C) For each additional year in the age,a woman earns $760 less than a man. D) On average,a woman earns $760 less than a man. = 26.3 + 1.38x1 + 2.98x2 - 0.76x3 when you run the regression,how would you interpret the coefficient on gender?


A) A woman earns 76% of a man's earnings.
B) For each additional year of education,a woman earns $760 less than a man.
C) For each additional year in the age,a woman earns $760 less than a man.
D) On average,a woman earns $760 less than a man.

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