Consider the Following Multiple Regression Models (A)to (D)below

question 53

Multiple Choice

Consider the following multiple regression models (a) to (d) below.DFemme = 1 if the individual is a female,and is zero otherwise;DMale is a binary variable which takes on the value one if the individual is male,and is zero otherwise;DMarried is a binary variable which is unity for married individuals and is zero otherwise,and DSingle is (1-DMarried) .Regressing weekly earnings (Earn) on a set of explanatory variables,you will experience perfect multicollinearity in the following cases unless:

• A) i = + DFemme + Dmale + X3i
• B) i = + DMarried + DSingle + X3i
• C) i = + DFemme + X3i
• D) i = DFemme + Dmale + DMarried + DSingle + X3i

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Definitions:

Cartel Agreement

An arrangement among competing firms to control prices or output in a market, often to limit competition.

Cartelized Market

A market situation where a small number of firms collaborate to control prices and production, limiting competition.

Cartel Members

Members of a cartel work together to control the production and pricing of goods in a particular market, effectively limiting competition.

International Zinc Cartel

An agreement among zinc producers to control zinc prices and production globally, often to manipulate market conditions.