Solved

Your Textbook Discussed the Regression Model When X Is a Binary

Question 6

Essay

Your textbook discussed the regression model when X is a binary variable
Yi = β0 + β1Di + ui,i = 1... ,n
Let Y represent wages,and let D be one for females,and 0 for males.Using the OLS formula for the slope coefficient,prove that Your textbook discussed the regression model when X is a binary variable Yi = β0 + β1Di + ui,i = 1... ,n Let Y represent wages,and let D be one for females,and 0 for males.Using the OLS formula for the slope coefficient,prove that   is the difference between the average wage for males and the average wage for females. is the difference between the average wage for males and the average wage for females.

Correct Answer:

verifed

Verified

Using the ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions