For the Model Y = β₀ + β₁x + β₂d

question 76

Multiple Choice

For the model y = β₀ + β₁x + β₂d + ε, which test is used for testing the significance of a dummy variable d?

• A) F test
• B) chi-square test
• C) z test
• D) t test

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Definitions:

Production Costs

The total expenses incurred in the manufacturing or creation of a product or service.

Economic Profit

The difference between total revenue and total costs, including both explicit and opportunity costs, indicating true profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wage, rent, and materials.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.