Item $6$

$MCQ5$

The plot below characterises the relationship between three variables: continuous variables $y$ and $x$ and a binary

variable din$\{0,1\}.$

Based on the plot, what model specification would you recommend where $y$ is the dependent variable, and $x$ and $d$

are the independent variables?

A

$y={}_0+{}_{0}d+{}_{1}x+{}_{1}d*x+u$

B $y={}_0+{}_{0}d+{}_{1}x+u$

C $y={}_0+{}_{0}d+u$

$y={}_0+{}_{1}x+u$

I do not want to answer this question