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Doubt is in Q: 42: why is it a, not c?..Any reason..
The next Three questions pertain to the following: 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 Rs per day of the ith individual, Di = 1 if individual
i is male, and 0 otherwise, ui is a classical error term, and the figures in
parentheses are standard errors.
Question 42. 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
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