Repeat Problem 10.1, but now use a dummy variable for education. Divide the education level into three categories: did not complete high school, completed at least high school, and completed at least...

Repeat Problem 10.1, but now use a dummy variable for education. Divide the education level into three categories: did not complete high school, completed at least high school, and completed at least a bachelor’s degree. Compare the interpretation you would make of the effects of education on income in this problem and in Problem 10.1

PROBLEM 10.1

In the depression data set described in Chapter 3, data on educational level, age, sex, and income are presented for a sample of adults from Los Angeles County. Fit a regression plane with income as the dependent variable and the other variables as independent variables. Use a dummy variable for the variable SEX that was originally coded 1,2 by stating SEX = SEX−1. Which sex is the referent group?