Author Topic: Paper Question Part 2 question f)  (Read 469 times)


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Paper Question Part 2 question f)
« on: April 12, 2017, 12:00:24 AM »
I have a question for part f) in the paper portion of the midterm 2. For going through the variables of the model, I am having trouble trying to decide whether to use an omitted variable vs a dummy variables for the extent of each variable. Would I be able to use a hypothesis test to clear out the professional and services portion of the model?

Scott Onestak

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Re: Paper Question Part 2 question f)
« Reply #1 on: April 12, 2017, 03:02:09 AM »

I'm not completely understanding your comprehension of this question, but this might help you understand what part f is getting at.

You have your model that's been constructed.  What test would you be able to construct that can tell you that there is no effect on wages for obese women employed in either sales or services (relative to the production sector).  Beyond that, it's hard to help without giving away the answer.  But this is the key phrase you should be focusing on.