Let d be a dummy variable and x a regular regressor we


Let d be a dummy variable, and x a regular regressor. We assume that  for individuals with d = 0, and  for individuals with d = 1. We are interested in testing whether both regression lines are equal, so we run the Chow test regression. Which hypothesis do we need to test in this last regression?

Solution Preview :

Prepared by a verified Expert
Business Management: Let d be a dummy variable and x a regular regressor we
Reference No:- TGS01466637

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)