Suppose you have the following estimated equation Alchohol = 4.2 – 4Age21 where Age21 is a dummy indicating whether an observed individual is younger than 21(the legal drinking age) and Alchohol...


Suppose you have the following estimated equation Alchohol = 4.2 – 4Age21 where Age21 is a<br>dummy indicating whether an observed individual is younger than 21(the legal drinking age) and<br>Alchohol represents monthly alchohol consumption. What would be your estimate of the slope if<br>you replace the Age21 dummy with a dummy indicating whether the observed individual is 21 or<br>older and you use yearly alchohol consumption instead of monthly.<br>-4<br>4<br>-48<br>48<br>

Extracted text: Suppose you have the following estimated equation Alchohol = 4.2 – 4Age21 where Age21 is a dummy indicating whether an observed individual is younger than 21(the legal drinking age) and Alchohol represents monthly alchohol consumption. What would be your estimate of the slope if you replace the Age21 dummy with a dummy indicating whether the observed individual is 21 or older and you use yearly alchohol consumption instead of monthly. -4 4 -48 48

Jun 11, 2022
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