Your Textbook Discussed the Regression Model When X Is a Binary

question 15

Essay

Your textbook discussed the regression model when X is a binary variable
Y_i = ?₀ + ?_iD_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 intercept coefficient, prove that $\widehat { \beta 0 }$ is the average wage for males.

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Definitions:

White-collar

Relating to the class of jobs that typically involve mental or clerical work as opposed to manual labor.

White-collar Deviance

Non-violent crime committed by individuals in professional roles, involving deception for financial gain, such as fraud or embezzlement.

Personal Gain

Advantages or benefits, often of a financial or material nature, pursued or achieved for oneself.

Corporate Gain

The increase in value or wealth of a business entity, typically measured in financial terms and often pursued through various strategies and operations.