Answer Happy

Suppose you are interested in investigating the wage gender gap using data on earnings of men and women. Which of the following models best serves this purpose? A. Female = Bo + B₁ Wage + u where Female (=1 if female) is an indicator variable and u the error term. B. Wage=B+B₁ Female + u, where Female (=1 if female) is an indicator variable and u the error term. C. Wage=B+ u where u is the error term. D. Male =B₁ + B₁ Female + u where Male (=1 if male) is an indicator variable and u the error term. Consider the regression model Where Female (=1 if female) is an indicator variable and u the error term. Identify the dependent and independent variables in the regression model above. Wage is the variable, while Female is the dependent independent variable. Wage = Po + B₁ Female + u