Database Reference
In-Depth Information
Finally, the magnitudes and signs of the estimated parameters should be examined
to see if they make sense. For example, suppose a negative coefficient for the
Education variable in the
Income
example was obtained. Because it is natural to
assume that more years of education lead to higher incomes, either something very
unexpected has been discovered, or there is some issue with the model, how the
data was collected, or some other factor. In either case, further investigation is
warranted.
