You Have Estimated the Following Equation Using OLS: ŷ =

question 7

Multiple Choice

You have estimated the following equation using OLS: ŷ = 33.75 + 1.45 MALE
Where y is annual income in thousands and MALE is an indicator variable such that it is 1 for males and 0 for females.According to this model,what is the average income for males?

• A)$33,750
• B)$35,200
• C)$32,300
• D)cannot be determined

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Definitions:

Lockboxes

A service provided by banks to process payments more quickly by having checks sent to a special post office box instead of the company's address.

Customer Payments

The payments made by customers for products or services received from a company.

Zero-balance Account

A banking arrangement where a company’s bank account is maintained at a zero balance, with funds being transferred from a master account as needed.