If You're Running a Multiple Regression of Employee Hours Worked $\frac{\sum_{i=1}^{N}\left(\text { Hours }_{i}-b-m_{1} \text { Tenure }_{i}-m_{2} M B A_{i}\right)}{N}$

question 24

Multiple Choice

If you're running a multiple regression of employee Hours Worked on Tenure (in number of years) and MBA (a binary variable equal to 1 for an employee with an MBA, 0 otherwise) , what moment conditions would not be used?

• A)
• \( \frac{\sum_{i=1}^{N}\left(\text { Hours }_{i}-b-m_{1} \text { Tenure }_{i}-m_{2} M B A_{i}\right)}{N} \) = 0
• B)
• \( \frac{\left. \sum _ { i = 1 } ^ { N } \text { Hours } _ { i } - b - m _ { 1 } \text { Tenure } _ { i } - m _ { 2 } \text { MBA } _ { i } \right) \text { Tenure } _ { i }}{N} \) = 0
• C)
• \( \frac{\sum _ { i = 1 } ^ { N } \left( \text { Hours } _ { i } - b - m _ { 1 } \text { Tenure } _ { i } \right) M B A _ { i }}{N} \) = 0
• D) \(\frac { \sum _ { i = 1 } ^ { N } e _ { i } } { N }\) = 0

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Definitions:

Corporate Management

The group of individuals responsible for directing, controlling, and administering an organization or company.

S-corp

is a type of corporation that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.

C-corp

A type of corporation subject to corporate income tax, distinct from its owners, who are taxed separately on their personal income from the corporation.

Double Taxation

A situation where income or profits are taxed at two levels, typically once at the corporate level and again at the individual shareholder level.