5.4 What is a dummy variable or an indicator variable? Describe the differences in interpretation of the
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5.4 What is a dummy variable or an indicator variable? Describe the differences in interpretation of the coefficients of a linear regression when the independent variable is continuous and when it is binary. Give an example of each case. How are the construction of confidence intervals and hypothesis tests different when the independent variable is binary compared to when it is continuous?
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Related Book For 
Introduction To Econometrics
ISBN: 9781292071367
3rd Global Edition
Authors: James Stock, Mark Watson
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