Examlex

Solved

You Would Like to Find the Effect of Gender and Marital

question 8

Essay

You would like to find the effect of gender and marital status on earnings.As a result,you consider running the following regression:
ahei= β0 + β1×DFemmei + β2×DMarri + β3×DSinglei + β4×educi+...+ ui
Where ahe is average hourly earnings,DFemme is a binary variable which takes on the value of "1" if the individual is a female and is "0" otherwise,DMarr is a binary variable which takes on the value of "1" if the individual is married and is "0" otherwise,DSingle takes on the value of "1" if the individual is not married and is "0" otherwise.The regression program which you are using either returns a message that the equation cannot be estimated or drops one of the coefficients.Why do you think that is?


Definitions:

Total Receipts

The total amount of cash received by a company during a specific period, including all sources of income.

Sales Tax Rate

The percentage of tax charged on the sale of goods and services, which is collected by merchants and passed on to the government.

Total Receipts

The aggregate amount of cash or cash-equivalents received by a company during a given period.

Sales Tax Rate

The percentage of sales price that is added to the sale of goods and services, to be collected by the seller and passed on to the government.

Related Questions