Consider the following panel data fixed effects regression model: Yit = B0 + B1Xit + Y2D2+ Y3D3i + +...Y4Dni + eit
where D1i is a binary variable that equals 1 when i = 1 and equals 0 otherwise, D2i is a binary variable that equals 1 when i = 2 and equals 0 otherwise, and so on. Thus, the dummy variables are indicators for which unit of observation (i.e., the group or entity) applies. What is the slope and intercept for: a. Group 1 in time period 1? b. Group 1 in time period 3? c. Group 3 in time period 1? d. Group 3 in time period 3?
B=Beta
e= Epsilon