12. A dummy variable: a. Is an artificial variable generated by the researcher via econometric packages b. Is used to check whether an event, policy, feature causes changes in the value of Y c. Takes on either 0 or 1 d. A and C e. All the above

13. To test whether the partial impact of X 1 on Y changes for different values of X 2 , we include: ________________________.

14. If the impact of X 1 on Y, differs depending on the initial value that X 1 takes on, we: a. Include a quadratic term in the regression equation b. Are dealing with a non-linear impact of X 1 on Y c. Can state that X1 has an increasing impact on Y d. A and B e. A and C

15. The partial impact of a categorical dummy on Y is ___________________.

16. Dummy Variable trap arises when we include all possible groups in the regression equation. (True / False)

17. The presence of multicollinearity between regressors does not violate ceteris paribus interpretation. (True / False)

18. When comparing two nested models, a researcher runs a/n _________test:

19. When comparing two non-nested models, one can rely on: __________________.