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Consider the Following Multiple Regression Models (A)to (D)below Eam^\widehat { E a m }

Question 25

Multiple Choice

Consider the following multiple regression models (a) to (d) below. DFemme = 1 if the individual is a female, and is zero otherwise; DMale is a binary variable which takes on the value one if the individual is male, and is zero otherwise; DMarried is a binary variable which is unity for married individuals and is zero otherwise, and DSingle is (1-DMarried) . Regressing weekly earnings (Earn) on a set of explanatory variables, you will experience perfect multicollinearity in the following cases unless:


A) Eam^\widehat { E a m } i = β0^\widehat { \beta 0 } + β1^\widehat { \beta 1 } DFemme + β^2\widehat{\beta} _ { 2 } Dmale + β^3\widehat { \beta } _ { 3 } X3i
B) Eam^\widehat{ E a m } i = β0^\widehat { \beta 0 } + β1^\widehat { \beta 1 } DMarried + β^2\widehat{\beta} _ { 2 } DSingle + β^3\widehat { \beta } _ { 3 } X3i
C) Eam^\widehat { E a m }
i = β0^\widehat { \beta 0 } + β1^\widehat { \beta 1 } DFemme + β^3\widehat { \beta } _ { 3 } X3i
D) Eam^\widehat { E a m } i = β1^\widehat { \beta 1 } DFemme + β2\beta _ { 2 } Dmale + β3^\widehat { \beta _ { 3 }} DMarried + β4^\widehat { \beta 4 } DSingle + β5^\widehat { \beta 5 } X3i

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