In the Regression Model Y_i = β₀ + β₁X_i

question 30

Multiple Choice

In the regression model Y_i = β₀ + β₁X_i + β₂D_i + β₃(X_i × D_i) + u_i, where X is a continuous variable and D is a binary variable, β₂

• A)is the difference in means in Y between the two categories.
• B)indicates the difference in the intercepts of the two regressions.
• C)is usually positive.
• D)indicates the difference in the slopes of the two regressions.

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