Consider the following binary variable version of the fixed effects model. Each regressor Dj is a binary variable that equals 1 when i = j and 0 otherwise. Note that the binary variable D1; for the first group is arbitrarily omitted. Yit = Po +B1Xit + y2D2;+Y3D3;+...+ynDn; +uit Use the regression in the equation above and the tool palette to the right to answer the following questions. What is the slope and intercept for entity 3 in time period 1? The slope of entity 3 in time period 1 is The intercept of entity 3 in time period 1 is (Properly format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the character.)

Consider the following binary variable version of the fixed effects model. Each regressor Dj is a binary variable that equals 1 when i = j and 0 otherwise. Note that the binary variable D1; for the first group is arbitrarily omitted. Yit = Po +B1Xit + y2D2;+Y3D3;+...+ynDn; +uit Use the regression in the equation above and the tool palette to the right to answer the following questions. What is the slope and intercept for entity 3 in time period 1? The slope of entity 3 in time period 1 is The intercept of entity 3 in time period 1 is (Properly format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the character.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 1E

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