Question
Suppose you have estimated wage = 10 + 5skill + 3gender,
where gender is one for male and zero for female. If gender had been one for female and zero for male, this result would have beenSolution
When Male E(W) = 10 + 3 + 5 skill = 13 + 5 skill  …………….(1) When female E (W) = 10 + 5 skill…………(2) So, when reference changes Intercept also changes to keep estimated wage same Now, When female E (w) = 13 + 5 skill – 3 gender Female(s) = 13 + 5 skill -3 = 10 + 5 skill …………..(3) When male E (w) = 13 + 5 skill ……….(4) (1) & (4) are same. (2)  & (3) are same. Hence, Option (d)
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