Your Textbook Discussed the Regression Model When X Is a Binary

question 11

Essay

Your textbook discussed the regression model when X is a binary variable
Y_i = ?₀ + ?₁D_i + u_i, i = 1..., n
Let Y represent wages, and let D be one for females, and 0 for males. Using the OLS formula for the slope coefficient, prove that $\hat{\beta}_ { 1 }$ is the difference between the average wage for males and the average wage for females.

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Definitions:

Hypnotism

A psychological technique involving inducing a state of intense concentration or trance-like state, aimed at heightening suggestibility and relaxation.

Repressed Memories

Recollections that are involuntarily suppressed because they are linked to severe stress or trauma.

Dream Analysis

A psychoanalytic technique used to explore the hidden meanings and symbols in dreams, often associated with the work of Freud.

Sexual Abuse

Any unwanted or coerced sexual activity, often exerting power or control over the victim.