# Dummy variable

Consider the following model
$ln(y_i)=1.21-0.36F_i+0.18x_i+\hat{\epsilon_i}$
where F=1 if female, 0 otherwise. Which of the following statements are correct?

Consider the following model
$ln(y_i)=1.13-0.18F_i+0.14x_i+0.07F_i\times~x_i+\hat{\epsilon_i}$
where F=1 if female, 0 otherwise. Which of the following statements are correct?

• SCIV
• SCII
• SCV
• Intercept
• SCI
• SCIIIM
• SCIIINM
• -0.07
• -0.13
• 0.04
• 0.00
• 1.27
• -0.18
• -0.14

Consider the following model
$ln(y_i)=1.13-0.36F_i-0.14B_i+\hat{\epsilon_i}$
where F=1 if female, 0 otherwise, and B=1 if black, 0 otherwise. What would be the model estimates if you included dummy variables for males (M) (instead of females) and non-black (NB) (instead of blacks).

• G1: x1
• G3: x1
• G1: Intercept
• G1: x3
• G2: x2
• G3: Intercept
• G1: x2
• G3: x2
• G2: x1
• G3: x3
• G2: x3
• G2: Intercept
• 1.05
• 0.02
• 1.13
• 0.14
• 0.05
• -0.18
• -0.18
• -0.15
• 0.14
• 0.14
• 1.24
• 0.07

• $~y_i=\alpha+\beta_1~x_i~$
• $~y_i=\alpha+\beta_1~x_i+\beta_2~D_i+\beta_3~D_i~\times~x_i~where~D_i=1~for~i=1,..n_1$
• $~y_i=\alpha+\beta_1~x_i+\beta_2~D_i~\times~x_i~where~D_i=1~for~i=1,..n_1$
• $~y_i=\alpha+\beta_1~x_i+\beta_2~D_i~where~D_i=1~for~i=n_1$
• $~y_i=\alpha+\beta_1~x_i+\beta_2~D_i~where~D_i=1~for~x_i>x^*$
• $~y_i=\alpha+\beta_1~x_i+\beta_2~D_i~where~D_i=1~for~i=1,..n_1$
• $~y_i=\alpha+\beta_1~x_i+\beta_2~D_i~\times~x_i,~where~D_i=1~for~x_i>x^*$

Consider the following model
$ln(y_i)=1.13-0.36F_i-0.14B_i+0.09F_iB_i+\hat{\epsilon_i}$
where F=1 if female, 0 otherwise, and B=1 if black, 0 otherwise. Interpret the coefficient on the interaction term.

• $~\delta_1~$
• $~\delta_3~$
• $~\delta_2~$
• $~\delta_0~$
• 9.2
• -26.2
• 52.8
• 0.8

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