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In this regression, I look at the determinants of years of schooling for a respondent as a function of the following: an intelligence score (ASVABC); mother's years of schooling (SM; father's years of schooling (SF; a FEMALE dummy variable = 1 if female, race dummy variables where there are only 3 ethnicities listed in the data: ETHWHITE, ETHBLAC, ETHHISP: an interaction term FEMBLACK where (FEMALE ETHBLAC), and another interaction term FEMHISP where (FEMALE ETHHISP).

Question: Given the following regression output, what is the reference group for all of the dummy variables and what is the expected years of schooling for hispanic males relative to the reference group?

A. Reference group = white male and Hispanic males have on average approximately 1.85 more years of schooling than the reference group.

B. Reference group = white male and Hispanic females have on average approximately 1.1 more years of schooling than the reference group.

C. Reference group = white male and Hispanic males have on average approximately 5.54 more years of schooling than the reference group.

D. Reference group = white female and Hispanic males have on average approximately 1.85 more years of schooling than the reference group.

E. Reference group = white female and Hispanic males have on average approximately 5.54 more years of schooling than the reference group.

Hint

Statistics

B. Reference group = white male and Hispanic females have on average approximately 1.1 more years of schooling than the reference group.

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