Suppose We Estimate a Model in Which Salary in Thousands

question 3

Multiple Choice

Suppose we estimate a model in which salary in thousands of Euros is the dependent variable and years of education is the independent variable. We get a result that says Income-hat = 20 + 2 Years Education. Which of the following is correct:

• A) Two years of education increases income by one.
• B) An extra year of education is expected to increase income by 2.
• C) An individual with 10 years of education is expected to have an income of 20.
• D) The expected income for someone with 0 years of education is 2.

---

Definitions:

Remarriage Rates

Statistical measures indicating the frequency at which individuals who have been married previously enter into subsequent marriages.

Cohabitation

A living arrangement where two people who are not married live together in an intimate relationship, often as a precursor to or alternative to marriage.

Pronatalist

Policies or attitudes that encourage the bearing of children, often used in the context of government policies designed to increase the birth rate.

Supermom

A popular term describing a mother who successfully manages a career and family duties, often perceived as handling both with ease and efficiency.