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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