I have two questions.
1) If you want to run regression with gender dummies-dummy for male and dummy for female, what would happen?
A) The program will omit one of dummy because of multicollinearity
B) The program will omit both of dummy because of multicollinearity
C) The program will automatically take into account this and will give coefficient of both male and female
D) All above are true.
2). If there exist omitted variables, what will be a way to overcome this?
A. Control the omitted variables
B. Use instrument
C. Both A and B.
D. Run probit model.
1) A.The program will omit one of... View the full answer