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DSE 2015 Q41, Q42, Q43 (M.A. Economics Entrance Exam) Question
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A Simple Linear Regression of wages on gender, run on a sample of 200 individuals, 150 of whom are men, yields the following:
Wi = 300 - 50Di + ui
(20) (10)
where Wi is the wage in Rupees per day of the ith individual, Di = 1 if individual is male, and 0 otherwise, ui is a classical error term, and the figures in parentheses are standard errors.
Question: What is the average wage in the sample?
(a) Rs 250 per day
(b) Rs 275 per day
(c) Rs 262.50 per day
(d) Rs 267.50 per day
Question: The most precise estimate of the difference in wages between men and women would have been obtained if, among these 200 individuals,
(a) There were an equal number (100) of men and women in the sample
(b) The ratio of the number of men and women in the sample was the same as the ratio of their average wages
(c) There were at least 30 men and 30 women; this is sufficient for estimation: precision does not depend on the distribution of the sample across men and women
(d) None of the above
Question: The explained (regression) sum of squares in this case is:
(a) 93750
(b) 1406.25
(c) 15000
(d) This cannot be calculated from the information given
0:00 Introduction to Question 41 (DSE 2015)
0:58 Solution
9:57 Introduction to Question 42 (DSE 2015)
10:11 Solution
29:20 Introduction to Question 43 (DSE 2015)
29:32 Solution
Whatsapp us on +91-9560560080
A Simple Linear Regression of wages on gender, run on a sample of 200 individuals, 150 of whom are men, yields the following:
Wi = 300 - 50Di + ui
(20) (10)
where Wi is the wage in Rupees per day of the ith individual, Di = 1 if individual is male, and 0 otherwise, ui is a classical error term, and the figures in parentheses are standard errors.
Question: What is the average wage in the sample?
(a) Rs 250 per day
(b) Rs 275 per day
(c) Rs 262.50 per day
(d) Rs 267.50 per day
Question: The most precise estimate of the difference in wages between men and women would have been obtained if, among these 200 individuals,
(a) There were an equal number (100) of men and women in the sample
(b) The ratio of the number of men and women in the sample was the same as the ratio of their average wages
(c) There were at least 30 men and 30 women; this is sufficient for estimation: precision does not depend on the distribution of the sample across men and women
(d) None of the above
Question: The explained (regression) sum of squares in this case is:
(a) 93750
(b) 1406.25
(c) 15000
(d) This cannot be calculated from the information given
0:00 Introduction to Question 41 (DSE 2015)
0:58 Solution
9:57 Introduction to Question 42 (DSE 2015)
10:11 Solution
29:20 Introduction to Question 43 (DSE 2015)
29:32 Solution
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