Question: Consider a partitioned regression function X = X + X where X contains one RHS variable, an indicator (dummy) variable that equals one for a

Consider a partitioned regression function Xβ = X₁β₁ + X₂β₂ where X₂ contains one RHS variable, an indicator (dummy) variable that equals one for a particular observation and zero for all other observations. What special properties does the OLS fit possess?

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