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Suppose you want to estimate a regression in Stata in which one of the explanatory variables, state, is a categorical variable. Which of the following

Suppose you want to estimate a regression in Stata in which one of the explanatory variables, state, is a categorical variable. Which of the following regression commands will properly use the state variable?

a) reg y x state

b) reg y x i.state

c) reg y x, cluster(state)

d) none of the above will work correctly.

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