For a sample of employees participating in an annual appraisal, the effect of the participants' performance on their wages is studied. Variables are defined as: = wage of employee ; if employee passes and otherwise; if employee fails and otherwise. Which one of the following regression models CANNOT be estimated? (A) ; (B) ; (C) ; (D)
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For a sample of employees participating in an annual appraisal, the effect of the participants' performance on their wages is studied. Variables are defined as: Wageᵢ = wage of employee i; Passᵢ=1 if employee i passes and 0 otherwise; Failᵢ=1 if employee i fails and 0 otherwise. Which one of the following regression models CANNOT be estimated? (A) Wageᵢ=α+β Passᵢ+γ Failᵢ+u₁ᵢ; (B) Wageᵢ=β Passᵢ+γ Failᵢ+u₂ᵢ; (C) Wageᵢ=α+γ Failᵢ+u₃ᵢ; (D) Wageᵢ=α+β Passᵢ+u₄ᵢ (A) Wageᵢ=α+β Passᵢ+γ Failᵢ+u₁ᵢ (B) Wageᵢ=β Passᵢ+γ Failᵢ+u₂ᵢ (C) Wageᵢ=α+γ Failᵢ+u₃ᵢ (D) Wageᵢ=α+β Passᵢ+u₄ᵢ
Also written as: For a sample of employees participating in an annual appraisal, the effect of the participants' performance on their wages is studied. Variables are defined as: Wage_i = wage of employee i; Pass_i=1 if employee i passes and 0 otherwise; Fail_i=1 if employee i fails and 0 otherwise. Which one of the following regression models CANNOT be estimated? (A) Wage_i=alpha+beta Pass_i+gamma Fail_i+u_(1i); (B) Wage_i=beta Pass_i+gamma Fail_i+u_(2i); (C) Wage_i=alpha+gamma Fail_i+u_(3i); (D) Wage_i=alpha+beta Pass_i+u_(4i)
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