Your Textbook Discussed the Regression Model When X Is a Binary

question 52

Essay

Your textbook discussed the regression model when X is a binary variable $$Y _ { i } = \beta _ { 0 } + \beta _ { 1 } D _ { i } + u _ { i } , i = 1 , \ldots , n$$
Let $Y$ represent wages, and let $D$ be one for females, and 0 for males. Using the OLS formula for the intercept coefficient, prove that $\widehat { \beta } _ { 0 }$ is the average wage for males.

---

Definitions:

Negative

Something that lacks positivity or constructive aspects, often associated with harmful or undesirable outcomes.

Schizophrenia

A psychiatric disorder characterized by disordered thinking, perceptions, and emotions, leading to hallucinations, delusions, and impaired functioning.

Hallucinations

Sensory perceptions that appear to be real but are created within the mind, without external stimuli, and can affect all five senses.

Neologisms

Newly coined terms, words, or expressions, often used in specific fields or by specific groups.