For the same wage-gender regression, the most precise estimate of the male-female wage difference would have been obtained if, among the individuals,
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2 marks, −0.666666666666667EconometricsLinear regression and OLSThe Gauss-Markov theorem and OLS propertiesModerateabout 3 min
DSE 2015 Question 42: Linear regression and OLS
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For the same wage-gender regression, the most precise estimate of the male-female wage difference would have been obtained if, among the 200 individuals, (A) there were an equal number (100) of men and women (B) the ratio of men to women equalled the ratio of their average wages (C) there were at least 30 men and 30 women, since precision then does not depend on the split (D) none of the above
Linear regression and OLS has come up 74 times in 7 exams since 2008.
What this question tests
This question is on The Gauss-Markov theorem and OLS properties, part of Linear regression and OLS in Econometrics.
Why OLS is the best linear unbiased estimator, and what it needs.
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