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You are estimating a model for salaries as a function of experience, education, gender and which department in the company the individual is employed. If you run the multiple regression with salary (in dollars) as dependent variable and Years_previous_experience, years_education, gender (male=1, female=0) and department_1, department_3, and department_4, dummy variables (department_2 is the excluded category), you obtain (note the sample size = 46) the regression output below.

From the regression estimates below, the expected effect of being in department_3 relative to department_2, holding all else constant, equals

Answer

A. $762
B. -$762
C. -$5889
D. $5889
E. Impossible to determine with the given information

Microeconomics, Economics

  • Category:- Microeconomics
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