Suppose the researcher considers the following model: Wage = Bo +B1Female + 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) %3D %3D 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, : B1 0 is less than 0.05. O This regression may suffer omitted variable bias. O Since R is too low, the wage difference between men and women is insignificant. The researcher can increase R by including more regressors in the model

Suppose the researcher considers the following model: Wage = Bo +B1Female + 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) %3D %3D 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, : B1 0 is less than 0.05. O This regression may suffer omitted variable bias. O Since R is too low, the wage difference between men and women is insignificant. The researcher can increase R by including more regressors in the model

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How do you interpret the R-squared obtained from running this regression?
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