In a simple linear regression model, wage =  +

data-mathml="%3Cmath%20style%3D%22font%2Dfamily%3A%27Times%20New%20Roman%2C%20serif%27%22%20xmlns%3D%22http%3A%2F%2Fwww%2Ew3%2Eorg%2F1998%2FMath%2FMathML%22%3E%3Cmstyle%20mathsize%3D%2215px%22%3E%3Cmsub%3E%3Cmi%3E%26%23946%3B%3C%2Fmi%3E%3Cmn%3E1%3C%2Fmn%3E%3C%2Fmsub%3E%3C%2Fmstyle%3E%3C%2Fmath%3E" src="@@PLUGINFILE@@/ppg__cognero__Ch_02_The_Simple_Regression_Model__media__1bf590d6-a2ba-4841-b79e-97ddde25877f.PNG" style="vertical-align: middle;" />male + u, where male is a binary variable (1 if a person is male, and 0 otherwise), is the difference in the average wage between males and non-males.

Answer the following statement true (T) or false (F)

True

Rationale:

Here,  = E(wage|male = 1) - E(wage|male = 0) . In words,   is the difference in the average wage between males and non-males.

Economics

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