Author Question: In the case of regression with interactions, the coefficient of a binary variable should be ... (Read 213 times)

karen

  • Hero Member
  • *****
  • Posts: 537
In the case of regression with interactions, the coefficient of a binary variable should be interpreted as follows:
 
  A) there are really problems in interpreting these, since the ln(0) is not defined.
  B) for the case of interacted regressors, the binary variable coefficient represents the various intercepts for the case when the binary variable equals one.
  C) first set all explanatory variables to one, with the exception of the binary variables. Then allow for each of the binary variables to take on the value of one sequentially. The resulting predicted value indicates the effect of the binary variable.
  D) first compute the expected values of Y for each possible case described by the set of binary variables. Next compare these expected values. Each coefficient can then be expressed either as an expected value or as the difference between two or more expected values.

Question 2

(Requires Calculus) In the multiple regression model you estimate the effect on Yi of a unit change in one of the Xi while holding all other regressors constant. This
 
  A) makes little sense, because in the real world all other variables change.
  B) corresponds to the economic principle of mutatis mutandis.
  C) leaves the formula for the coefficient in the single explanatory variable case unaffected.
  D) corresponds to taking a partial derivative in mathematics.



enass

  • Sr. Member
  • ****
  • Posts: 380
Answer to Question 1

Answer: D

Answer to Question 2

Answer: D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

enass

  • Sr. Member
  • ****
  • Posts: 380

 

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

For a complete list of videos, visit our video library