Question: Using 20 observations, the following regression output is obtained from estimating y = 0 + 1x + 2d + 3xd + . a. Compute

Using 20 observations, the following regression output is obtained from estimating y = Î²0 + Î²1x + Î²2d + Î²3xd + É›.

a. Compute Å¶ for x = 10 and d = 1; then compute Å¶ for x = 10 and d = 0.
b. Are the dummy variable d and the interaction variable xd individually significant at the 5% level? Explain.

Standard Coefficients Error 13.i 4.62 -5.15 2.09 3.31 0.56 4.97 0.79 t Stat p-Value 4.09 0.0009 8.31 0.0000 04 0.3156 2.64 0.0178

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