5.10 Let Xi denote a binary variable and consider the regression Yi = b0 + b1Xi +...
Question:
5.10 Let Xi denote a binary variable and consider the regression Yi =
b0 + b1Xi + ui. Let Y0 denote the sample mean for observations with X = 0 and let Y1 denote the sample mean for observations with X = 1.
Show that b n
0 = Y0, b n
0 + b n
1 = Y1, and b n
1 = Y1 - Y0.
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Related Book For
Introduction To Econometrics
ISBN: 9781292071367
3rd Global Edition
Authors: James Stock, Mark Watson
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