You have collected data on individuals and their attributes. Consequently you have generated several binary variables, which take on a value of "1" if the individual has that characteristic and are "0" otherwise. One example is the binary variable DMarr which is "1" for married individuals and "0" for non-married variables. If you run the following regression:
ahe_i= β₀ + β₁×educ_i + β₂×DMarr_i+ u_i
a. What is the interpretation for β₂?
b. You are interested in directly observing the effect that being non-married ("single")has on earnings, controlling for years of education. Instead of recording all observations such that they are "1" for a not married individual and "0" for a married person, how can you generate such a variable (DSingle)through a simple command in your regression program?

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The Answer of You have collected data on individuals and their attributes. Consequently you have generated several binary variables, which take on a value of "1" if the individual has that characteristic and are "0" otherwise. One example is the binary variable DMarr which is "1" for married individuals and "0" for non-married variables. If you run the following regression: ahe_i= β₀ + β₁×educ_i + β₂×DMarr_i+ u_i a. What is the interpretation for β₂? b. You are interested in directly observing the effect that being non-married ("single")has on earnings, controlling for years of education. Instead of recording all observations such that they are "1" for a not married individual and "0" for a married person, how can you generate such a variable (DSingle)through a simple command in your regression program?

You Have Collected Data on Individuals and Their Attributes