ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Suppose the researcher considers the following model :
Wage = Bo+B,Female + u, and runs OLS, using wage data on 250
randomly selected male workers and 280 female workers. The researcher has
obtained the estimated equation as
Wage = 15
(1.00)
3 Female, R = 0.05.
(0.5)
In the equation, Wage is measured in dollars per hour, Female is a binary variable
that is equal to 1 if the person is a female and O if the person is a male. The numbers
in the parentheses are the standard errors of the coefficients.
Which Statement is NOT correct?
The coefficient of Female, -3.00, is statistically significant at 5%.
O The p-value for the test that Ho: B = 0, H : B 0 is less than
0.05.
This regression may suffer omitted variable bias.
R
Since
insignificant.
is too low, the wage difference between men and women is
The researcher can increase R- by including more regressors in the model.
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Transcribed Image Text:Suppose the researcher considers the following model : Wage = Bo+B,Female + u, and runs OLS, using wage data on 250 randomly selected male workers and 280 female workers. The researcher has obtained the estimated equation as Wage = 15 (1.00) 3 Female, R = 0.05. (0.5) In the equation, Wage is measured in dollars per hour, Female is a binary variable that is equal to 1 if the person is a female and O if the person is a male. The numbers in the parentheses are the standard errors of the coefficients. Which Statement is NOT correct? The coefficient of Female, -3.00, is statistically significant at 5%. O The p-value for the test that Ho: B = 0, H : B 0 is less than 0.05. This regression may suffer omitted variable bias. R Since insignificant. is too low, the wage difference between men and women is The researcher can increase R- by including more regressors in the model.
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