The Following Interactions Between Binary and Continuous Variables Are Possible

question 26

Multiple Choice

The following interactions between binary and continuous variables are possible, with the exception of

• A)Y_i = β₀ + β₁X_i + β₂D_i + β₃(X_i × D_i)+ u_i.
• B)Y_i = β₀ + β₁X_i + β₂(X_i × D_i)+ u_i.
• C)Y_i = (β₀ + D_i)+ β₁X_i + u_i.
• D)Y_i = β₀ + β₁X_i + β₂D_i + u_i.

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Definitions:

Inventory

A company's stock of goods, materials, and products held to fulfill future sales or production needs.

Product-Based Definition

Characterization of a product strictly in terms of its physical attributes and features.

Poka-Yoke

Literally translated, “foolproof”; it has come to mean a device or technique that ensures the production of a good unit every time.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental changes over time.