Question: In the regression model Y i = 0 + 1 X i + 2 D i + 3 ( X i D i ) +
In the regression model Yi= 0+ 1Xi + 2Di+ 3(Xi Di) + ui, where Y is the dependent variable (for example, hourly wage), X is a continuous variable (for example, education) and D is a binary variable (for example, for gender (i.e. female)), to test that the two regressions are identical (for example, women and men have the same hourly wages), you must use the:
A) t-statistic separately for 2= 0, 3 = 0.
B) F-statistic for the joint hypothesis that 0 = 0, 1 = 0.
C) t-statistic separately for 3 = 0.
D) F-statistic for the joint hypothesis that 2 = 0, 3= 0.
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