Let

D

be a dummy variable, while

x

and

Y

are continuous variables. You have the following regression model:\

Y=\\\\beta _(0)+\\\\beta _(1)x+\\\\beta _(2)D+\\\\beta _(3)xD.

\ When the dummy variable switches from 0 to 1, then for any value of

x

, the change in the expected value of

Y

is:\

\\\\beta _(1)

\

\\\\beta _(2)

\

\\\\beta _(3)x

\

(\\\\beta _(2)+\\\\beta _(3))x

\

\\\\beta _(2)+\\\\beta _(3)x

Let D be a dummy variable, while X and Y are continuous variables. You have the following regression model: Y=0+1X+2D+3XD. When the dummy variable switches from 0 to 1 , then for any value of X, the change in the expected value of Y is: 1 2 3X (2+3)X 2+3X