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Chapter 10 Dummy Variable Models - IIT Kanpur

Econometrics | Chapter 10 | Dummy Variable Models | Shalabh, IIT Kanpur 3 If D2 1, then 0112 02 11 20211.1 (/ 1)( ) yx x E yD x which is a straight-line relationship with intercept () 02 and slope 1. The quantities Ey D(/ 0)2 and Ey D(/ 1)2 are the average responses when an …

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