Consider the following binary variable version of the fixed effects model. Each regressor Dj is a binary variable that equals 1 when i = j and 0 otherwise. Note that the binary variable D1; for the first group is arbitrarily omitted. Yit = Po +B1Xit + y2D2;+Y3D3;+...+ynDn; +uit Use the regression in the equation above and the tool palette to the right to answer the following questions. What is the slope and intercept for entity 3 in time period 1? The slope of entity 3 in time period 1 is The intercept of entity 3 in time period 1 is (Properly format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the character.)
Consider the following binary variable version of the fixed effects model. Each regressor Dj is a binary variable that equals 1 when i = j and 0 otherwise. Note that the binary variable D1; for the first group is arbitrarily omitted. Yit = Po +B1Xit + y2D2;+Y3D3;+...+ynDn; +uit Use the regression in the equation above and the tool palette to the right to answer the following questions. What is the slope and intercept for entity 3 in time period 1? The slope of entity 3 in time period 1 is The intercept of entity 3 in time period 1 is (Properly format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the character.)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 1E
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning