Question

In the context of the given data on econ 333 test scores, what does the variable

di represent?
A) The duration for which student i studies for the exam
B) The major of the student (1 if economics major, 0 otherwise)
C) The test scores of student i
D) The par value of the common stock held by the student
Please select the correct option.

Answer 1

The variable di in econ 333 test scores likely denotes whether a student is an economics major (1 for yes, 0 for no), serving as an indicator variable for the student's major in the statistical analysis.

Step-by-step explanation:

In the context of econ 333 test scores, the variable di likely represents the indicator variable that shows whether the student is an economics major or not, with 1 indicating an economics major and 0 otherwise. This is common practice in econometrics and statistical analysis where binary variables are used to distinguish between two groups within a sample, in this case, economics majors and non-economics majors. It is not related to the duration of study, actual test scores, or the par value of stock held by the student.