Consider the regression model Y = B1 + B2X+ B3D+ BaX D+u, where D is a dummy variable. What would it mean if Ba = 0? O For individuals with D-1, X has no effect on Y O The average values of X are equal in both groups. O If X-0, the group with D-1 and the group with D-0 have the same expected value for Y O The partial effect of X on Y in the group with D-1 is the same as the partial effect of X on Y in the group with D-0. O None of the presented possible answers are correct.

MATLAB: An Introduction with Applications
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Consider the regression model
Y = B1 + BaX+ B3D+ BaX D+u,
where D is a dummy variable. What would it mean if B4 = 0?
O For individuals with D-1, X has no effect on Y
O The average values of X are equal in both groups.
O If X-0, the group with D-1 and the group with D-0 have the same expected value for Y
O The partial effect of X on Y in the group with D-1 is the same as the partial effect of X on Y in the group with D-0.
O None of the presented possible answers are correct.
Transcribed Image Text:Consider the regression model Y = B1 + BaX+ B3D+ BaX D+u, where D is a dummy variable. What would it mean if B4 = 0? O For individuals with D-1, X has no effect on Y O The average values of X are equal in both groups. O If X-0, the group with D-1 and the group with D-0 have the same expected value for Y O The partial effect of X on Y in the group with D-1 is the same as the partial effect of X on Y in the group with D-0. O None of the presented possible answers are correct.
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