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Consider the Simple Population Regression Model Where the Treatment Is

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Essay

Consider the simple population regression model where the treatment is the same for the members of the treatment group, and hence X is a binary variable. Explain why the coefficient on X represents the difference between two means. How is the test for the statistical significance of the coefficient on X related to the test for differences in means between two populations, when their variances are different? Write down the null and alternative hypothesis in each case.


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