Question

Econometric

You would like to estimate the effects of being Hispanic vs. being White on earnings. You do not
have access to STATA but you know that the average earnings for the Hispanic individuals are
$37,529.1 while the average earnings for white individuals are $49,422.48 in the data.
a) Write down the population regression. Clearly, define your dependent and independent
variable. (HINT: Writing X and Y will not work) (1pts)
b) What are the estimated values for the intercept and the slope? (5pts)
c) Write down the estimated regression and interpret the values for the intercept and the slope.

Answer 1