The following simple model is used to determine the annual savings of an individual on the...
The following simple model is used to determine the annual savings of an individual on the basis of his annual income and education.
Savings = β0+∂0 Edu + β1Inc+u
The variable ‘Edu’ takes a value of 1 if the person is educated and the variable ‘Inc’ measures the income of the individual.
Refer to the above model. If ∂0 > 0, _____.
| a. |
individual with lower income have higher savings |
|
| b. |
individuals with lower income have higher savings |
|
| c. |
educated people have higher savings than those who are not educated |
|
| d. |
uneducated people have higher savings than those who are educated |
Homework Answers
Since, Edu takes a value of 1 if the person is educated
and ∂0 > 0 if Edu = 1 the value of variable ‘Inc’ increases
hence,
c. educated people have higher savings than those who are not educated
Add Answer to:
The following simple model is used to determine the
annual savings of an individual on the...
1.13 Consider a multiple regression model 1.15 Consider a multiple regression model: with a dummy variable:...
1.13 Consider a multiple regression model 1.15 Consider a multiple regression model: with a dummy variable: h(wage)-A, + β.educ + β white + β,NonWhite + u where wage and educ denote the annual income and the number of years of education, respectively. White indicates the dummy variable taking 1 if white and zero otherwisc. Non White indicates the dummy variable taking 1 if non-white (African, Hispanic, Asian, Pacific Islander, Native American, etc.) and zero otherwise. Which of the following is...
20. A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portio...
20. A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion of the data is as follows: Salary Education 35 1 67 6 ⋮ ⋮ 32 0 a. Find the sample regression equation for the model: Salary = β0 + β1Education + ε. (Round answers to 2 decimal places.) Salaryˆ=Salary^= + Education b. Interpret the coefficient for Education. As Education...
To examine the differences between salaries of male and female middle managers of a large bank, 90 individuals were randomly selected, and two models were created with the following variables cons...
To examine the differences between salaries of male and female middle managers of a large bank, 90 individuals were randomly selected, and two models were created with the following variables considered Salary- the monthly salary (excluding fringe benefits and bonuses), Educ the number of years of education, Exper the number of months of experience, Train the number of weeks of training, Gender- the gender of an individual; 1 for males, and O for females. Excel partial outputs corresponding to these...
A social scientist would like to analyze the relationship between educational attainment (in years of higher...
A social scientist would like to analyze the relationship between educational attainment (in years of higher education) and annual salary (in $1,000s). He collects data on 20 individuals. A portion of the data is as follows: Salary Education 38 2 68 1 80 3 47 5 64 3 83 4 110 10 58 0 23 4 26 5 102 7 42 6 68 6 69 5 158 5 60 0 82 3 56 6 127 6 37 0 a. Find...
1. Labor economists often study the returns on investment in education (see, e.g. Card 1999). Suppose...
1. Labor economists often study the returns on investment in education (see, e.g. Card 1999). Suppose we have data on salaries of a set of people, some of whom went to college and some who did not. A simple model linking education to salary is, Salaryi = Bo + Bi College graduate; + Eig where the value of Salary: is the salary of person i and the value of College graduate; is 1 if person i graduated from college and...
Consider the marginal buyer in a market, the individual who is first to exit the market...
Consider the marginal buyer in a market, the individual who is first to exit the market if the price of the good increases and who is the last and most recent entry to the market when the price of the good fell. What is the value of consumer surplus for the marginal buyer? Why? (3-4 sentences.) Suppose a policymaker wants to impose a tax on a luxury good with the intention that buyers will bear the burden (or incidence) of...
1. A researcher is hired to investigate the effects of a drug treatment program on subsequent...
1. A researcher is hired to investigate the effects of a drug treatment program on subsequent recidivism of drug offenders. Recidivism is measured by a urinalysis that will yield evidence of positive or negative drug use. The researcher observes that those individuals completing an 8 week version of the program have significantly higher levels of recidivism than those individuals who were assigned to a 12 week version of the program. The researcher concludes that the four extra weeks resulted in...
It stands to reason that a link may exist between religious attendance (independent variable) and the...
It stands to reason that a link may exist between religious
attendance (independent variable) and the willingness to extend
freedom of speech to radical Muslim clerics (dependent variable):
In a comparison of individuals, people who frequently attend
religious services will be less likely to extend free-speech rights
to radical Muslims than will people who infrequently attend.
Education (control variable) might also be related to speech
opinions, in that less educated people have less tolerant attitudes
than do those with more...
Question 1 0/1 point (graded) Which of the following is not a finding of Duflo (2001)?...
Question 1 0/1 point (graded) Which of the following is not a finding of Duflo (2001)? The growth in education levels was higher in places where more schools were built. Younger people were on average more educated than older people. Prior to the building of the schools, the regions where schools were built were similar to the regions where the school's weren't built In regions where a lot of schools were built, people were on average less educated prior to...
1.13 Consider a multiple regression model 1.15 Consider a multiple regression model: with a dummy variable: h(wage)-A, + β.educ + β white + β,NonWhite + u where wage and educ denote the annual income and the number of years of education, respectively. White indicates the dummy variable taking 1 if white and zero otherwisc. Non White indicates the dummy variable taking 1 if non-white (African, Hispanic, Asian, Pacific Islander, Native American, etc.) and zero otherwise. Which of the following is...
To examine the differences between salaries of male and female middle managers of a large bank, 90 individuals were randomly selected, and two models were created with the following variables considered Salary- the monthly salary (excluding fringe benefits and bonuses), Educ the number of years of education, Exper the number of months of experience, Train the number of weeks of training, Gender- the gender of an individual; 1 for males, and O for females. Excel partial outputs corresponding to these...
1. Labor economists often study the returns on investment in education (see, e.g. Card 1999). Suppose we have data on salaries of a set of people, some of whom went to college and some who did not. A simple model linking education to salary is, Salaryi = Bo + Bi College graduate; + Eig where the value of Salary: is the salary of person i and the value of College graduate; is 1 if person i graduated from college and...
Consider the marginal buyer in a market, the individual who is first to exit the market if the price of the good increases and who is the last and most recent entry to the market when the price of the good fell. What is the value of consumer surplus for the marginal buyer? Why? (3-4 sentences.) Suppose a policymaker wants to impose a tax on a luxury good with the intention that buyers will bear the burden (or incidence) of...
It stands to reason that a link may exist between religious
attendance (independent variable) and the willingness to extend
freedom of speech to radical Muslim clerics (dependent variable):
In a comparison of individuals, people who frequently attend
religious services will be less likely to extend free-speech rights
to radical Muslims than will people who infrequently attend.
Education (control variable) might also be related to speech
opinions, in that less educated people have less tolerant attitudes
than do those with more...
Question 1 0/1 point (graded) Which of the following is not a finding of Duflo (2001)? The growth in education levels was higher in places where more schools were built. Younger people were on average more educated than older people. Prior to the building of the schools, the regions where schools were built were similar to the regions where the school's weren't built In regions where a lot of schools were built, people were on average less educated prior to...
Most questions answered within 3 hours.
-
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 1 hour ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 1 hour ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 4 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 4 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 4 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 4 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 4 hours ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 4 hours ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 5 hours ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 5 hours ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 5 hours ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 5 hours ago