Question: In the Fixed Effects regression model, using ( n 1 ) binary variables for the entities, the coefficient of the binary variable indicates: Question 5

In the Fixed Effects regression model, using (n 1) binary variables for the entities, the coefficient of the binary variable indicates:
Question 5 options:
the level of the fixed effect of the ith entity.
will be either 0 or 1.
the response in the dependent variable to a percentage change in the binary variable.
the difference in fixed effects between the ith and the first entity.

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