If You Are Planning on Running the Regression Model Given

question 19

Multiple Choice

If you are planning on running the regression model given by Tenure_i = β₀ + β₁Salary_i + β₂Years of Education_i + U_i, which of the following situations would cause this model to have a limited dependent variable?

• A) No one in the company earns more $130,000 a year.
• B) Everyone in the company earns at least $65,000 a year.
• C) No one can have negative years of education.
• D) No one can have negative tenure at the company.

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