Dummy-Variable Regression
In particular, if the usual assumptions of the regression model hold, then it is desirable to fit the common-slope model by least squares. One way of formulating the common-slope model is Yi = α +βXi +γDi +εi (7.1) where D, called a dummy-variable regressor or an indicator variable, is coded 1 for men and 0 for women: Di = 1 for men 0 for ...
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