In Example 7.2, let noPC be a dummy variable equal to one if the student does not own a PC, and zero otherwise. (i) If noPC is used in place of PC in equation, what happens to the intercept in the estimated equation What will be the coefficient on noPC (Hint: Write PC = 1 _ noPC and plug this into the equation 11eb9ee2_f0b4_f2a8_8edd_c3a5396af570_SM2712_00 (ii) What will happen to the R-squared if noPC is used in place of PC (iii) Should PC and noPC both be included as independent variables in the model Explain. Equation 11eb9ee2_f0b4_f2a9_8edd_457ee6eb92e5_SM2712_00

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

النسخة 4الرقم المعياري الدولي: 978-0324660609

Introductory Econometrics 4th Edition by Jeffrey Wooldridge

النسخة 4الرقم المعياري الدولي: 978-0324660609

تمرين 19

In Example 7.2, let noPC be a dummy variable equal to one if the student does not own a PC, and zero otherwise.
(i) If noPC is used in place of PC in equation, what happens to the intercept in the estimated equation What will be the coefficient on noPC (Hint: Write PC = 1 _ noPC and plug this into the equation

(ii) What will happen to the R-squared if noPC is used in place of PC
(iii) Should PC and noPC both be included as independent variables in the model Explain.
Equation

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i.
If one use noPC in place of PC , then...