Question: Consider the population regression model Y = Bo + BXi + BDi + B3(X x D) + e, where X, is a continuous variable

Consider the population regression model Y = Bo + BX + BDi + B3(X xD) + e, where X, is a continuous variable

Consider the population regression model Y = Bo + BXi + BDi + B3(X x D) + e, where X, is a continuous variable and D, is a (0, 1) dummy variable. In this model, B O a. indicates the difference in the slopes of the two regressions. O b. is usually positive. Oc. is the difference in the means in Yi between the two categories. O d. indicates the difference in the intercepts of the two regressions.

Step by Step Solution

3.41 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The answer is c In this population regression model BO is the intercept term it is the expected valu... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!