You Have Collected Data on Individuals and Their Attributes

question 22

Essay

You have collected data on individuals and their attributes. Consequently you have generated several binary variables, which take on a value of "1" if the individual has that characteristic and are "0" otherwise. One example is the binary variable DMarr which is "1" for married individuals and "0" for non-married variables. If you run the following regression:
ahe_i= β₀ + β₁×educ_i + β₂×DMarr_i + u_i
a. What is the interpretation for β₂?
b. You are interested in directly observing the effect that being non-married ("single")has on earnings, controlling for years of education. Instead of recording all observations such that they are "1" for a not married individual and "0" for a married person, how can you generate such a variable (DSingle)through a simple command in your regression program?

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Definitions:

Paranoid Schizophrenia

A subtype of schizophrenia characterized by prominent delusions of persecution or conspiracy.

Psychosis

A mental health disorder where a person loses touch with reality, experiencing delusions, hallucinations, or thought disorder.

Cannabis Use

The act of consuming cannabis, a psychoactive drug derived from the Cannabis plant, for recreational or medicinal purposes.

Psychotic

Regarding a mental state often characterized by a disconnection from reality, which may include symptoms such as hallucinations and delusions.