1
Q
Holding everything else constant, an increase in x leads to an increase in y?
A
No, only if model upholds ZCM
2
Q
ZCM can be tested?
A
No, consider E[u], u is unnobservable
3
Q
Cov(x,û) = 0 only under the ZCM.
A
False, it is always true
4
Q
estimated wage = 7.1 - 2.51 female
do these estimates provide convinving evidence that gender pay gap exists?
A
No, omitted variables
5
Q
Interpret the coefficient
A
Has B effect on y, CETERIS PARIBUS
