Consider the following multiple regression models below. DFemme = 1 if the individual is a female, and is zero otherwise; DMale is a binary variable which takes 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 DMarried). Regressing weekly earnings (Earn) on a set of explanatory variables, you will experience perfect multicollinearity in the following cases EXCEPT for: O Ear;=31 DFemme +32 Dmale +33 DMarried +54 DSingle +85 X3i ¡=

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.EA: Extended Application Using Extrapolation To Predict Life Expectancy
Problem 2EA
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Consider the following multiple regression models 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 EXCEPT for:
$5 X31
O Earn;= 1 DFemme + 2 Dmale + .63 DMarried + 54 DSingle +
O Earni =
= 50+1 DFemme + 2 DSingle + 3 X3i
O Earn; = 30 +31 DFemme + 2 Dmale +53 X3i
O Earn;= 50+1 DMarried +52 DSingle + §3 X3i
Transcribed Image Text:Consider the following multiple regression models 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 EXCEPT for: $5 X31 O Earn;= 1 DFemme + 2 Dmale + .63 DMarried + 54 DSingle + O Earni = = 50+1 DFemme + 2 DSingle + 3 X3i O Earn; = 30 +31 DFemme + 2 Dmale +53 X3i O Earn;= 50+1 DMarried +52 DSingle + §3 X3i
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