Multiple Choice
Consider the following multiple regression models (a) to (d) below. DFemme = 1 if the individual is a female, and is zero otherwise; DMale is a binary variable which takes on the value one if the individual is male, and is zero otherwise; DMarried is a binary variable which is unity for married individuals and is zero otherwise, and DSingle is (1-DMarried) . Regressing weekly earnings (Earn) on a set of explanatory variables, you will experience perfect multicollinearity in the following cases unless:
A) i = + DFemme + Dmale + X3i
B) i = + DMarried + DSingle + X3i
C)
i = + DFemme + X3i
D) i = DFemme + Dmale + DMarried + DSingle + X3i
Correct Answer:

Verified
Correct Answer:
Verified
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