I have a preloaded data which contains four columns and each column contains the following data in the following order:
- Income (dollars)
- A dummy variable, 1 for male and 0 for female
- Another dummy variable, 1 for STEM and 0 for not STEM
I've been given the linear model:
INCOME = α + β1EDUCATION + β2MALE + β3STEM
I should answer the following questions:
a) How large is α in the above equation
b) How many dollars greater is the salary of a male than the salary of a female
From what I understand, I should start with storing each column in the data in separate variables. How would I do this?
Any hints to get me started with this task are appreciated!