1. You believe that the VIX trades in regimes where its average level is significantly different. You define four regimes from 2004 through 2020: June 2008 through October 2011 (financial crisis); the 12-month transition periods before and after the financial crisis; February 2020 through May 2020 (the COVID-19 crisis); and the remaining periods of low volatility. In order to test your hypothesis, you examine month-end values of the VIX from January 2004 through May 2020 (197 observations) and conduct the following regression: Dependent variable Y: Month-end value of VIX Dummy variable X1: Financial Crisis: 1 if between June 2008 through Oct 2011, 0 if not Dummy variable X2: Transition period: 1 if in 12 months before or after the financial crisis (June 2007 May 2008, or Nov 2011 Oct 2012) Dummy variable X3: COVID-19 crisis: 1 if between Feb 2020 through May 2020, 0 if not The results for the regression are as follows

	Coefficients	Standard Error
Intercept	14.63	0.5154
Financial Crisis	13.71	1.0464
Transition	6.02	1.2971
COVID-19 crisis	24.20	2.9608

1. How would the introduction of Dummy variable X4: Low volatility period (Jan 2004 May 2007, or Nov 2012 Jan 2020) affect the output of this regression? Why?
2. Which of the coefficients are significant at the 0.01 level?
3. According to the regression result, what was the average value of the VIX during the Financial Crisis?