Which of the following statements about the inclusion of dummy variables in econometric equations is false? a- The dependent variable on the left side of an equation can be a dummy variable b- An equation can have both a slope dummy an intercept dummy on the right hand side c- If there is a dummy variable as the dependent variable on the left side of an equation, intercept dummy cannot be placed as the explanatory variable on the right side; only a slope dummy can be placed on the right side d- If there is a dummy variable as the dependent variable on the left side of an equation, both intercept and the slope dummy can be placed as the explanatory variable on the right side
Which of the following statements about the inclusion of dummy variables in econometric equations is false? a- The dependent variable on the left side of an equation can be a dummy variable b- An equation can have both a slope dummy an intercept dummy on the right hand side c- If there is a dummy variable as the dependent variable on the left side of an equation, intercept dummy cannot be placed as the explanatory variable on the right side; only a slope dummy can be placed on the right side d- If there is a dummy variable as the dependent variable on the left side of an equation, both intercept and the slope dummy can be placed as the explanatory variable on the right side
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following statements about the inclusion of dummy variables in econometric equations is false?
a- The dependent variable on the left side of an equation can be a dummy variable
b- An equation can have both a slope dummy an intercept dummy on the right hand side
c- If there is a dummy variable as the dependent variable on the left side of an equation, intercept dummy cannot be placed as the explanatory variable on the right side; only a slope dummy can be placed on the right side
d- If there is a dummy variable as the dependent variable on the left side of an equation, both intercept and the slope dummy can be placed as the explanatory variable on the right side
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