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:

Control Group

In an experiment, the group that is not exposed to the treatment; contrasts with the experimental group and serves as a comparison for evaluating the effect of the treatment.

Social Interaction

The process by which individuals act and react in relation to others, influencing and being influenced by their social environment.

Nonalcoholic Beverage

A drink that contains little to no alcohol, including sodas, tea, coffee, and juices, often consumed for refreshment or hydration purposes.

Placebo

An inactive substance or treatment given to a participant in a study, used to assess the psychological effect of receiving treatment.