THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 217

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In examining the determinants of income,data were collected regarding the characteristics of 45 adults,and the regression Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ +ε was used,where Y is the annual income (in thousands of dollars) ,X₁ is the person's age,X₂ is his/her years of education,and X₃ is a dummy variable = 1 if the adult is female.
-If you get = 26.3 + 1.38x₁ + 2.98x₂ - 0.76x₃ when you run the regression,how would you interpret the coefficient on gender?

• A)A woman earns 76% of a man's earnings.
• B)For each additional year of education,a woman earns $760 less than a man.
• C)For each additional year in the age,a woman earns $760 less than a man.
• D)On average,a woman earns $760 less than a man.

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Definitions:

Capital Account Balance

Capital Account Balance is the net result of public and private international investments flowing in and out of a country, but it also refers to an individual's or company's financial statement showing the equity ownership and contributed capital.

Withdrawal

Withdrawal refers to the act of taking money out of a financial account, or the removal of participation or investment in a venture or agreement.

Net Income

A company's overall earnings post-deduction of every expense and tax from its total income.