The binary variable interaction regression
A) can only be applied when there are two binary variables, but not three or more.
B) is the same as testing for differences in means.
C) cannot be used with logarithmic regression functions because ln(0) is not defined.
D) allows the effect of changing one of the binary independent variables to depend on the value of the other binary variable.
Ans: D) allows the effect of changing one of the binary independent variables to depend on the value of the other binary variable.
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Refer to Exhibit 16-11. Assume that the starting point is point 1. Suppose that there is a supply-side change capable of reducing the capacity of the economy to produce. Which of the following best goes with the diagram shown?
A) New classical theory with policy incorrectly anticipated, bias downward
B) New classical theory with policy incorrectly anticipated, bias upward
C) Real business cycle theory
D) New classical theory with policy unanticipated
E) Policy ineffectiveness proposition (PIP)
A negative slope
A) represents an inverse relationship, such as beers consumed and test score. B) represents a direct relationship, such as snow fall and car accidents. C) indicates that there is no relationship between two variables, such as women's wages and likelihood of sunshine. D) means that the line crosses below the x-axis.
Although trade increases productivity, it decreases society's collective knowledge because people specialize in a very limited number of things.
a. true b. false
An increase in the productivity of workers shifts the labor ________ curve to the ________.
A. supply; right B. demand; left C. supply; left D. demand; right