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The Following Interactions Between Binary and Continuous Variables Are Possible Yi=β0+β1Xi+β2Di+β3(Xi×Di)+uiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + \beta _ { 2 } D _ { i } + \beta _ { 3 } \left( X _ { i } \times D _ { i } \right) + u _ { i }

Question 4

Short Answer

The following interactions between binary and continuous variables are possible, with the exception of a. Yi=β0+β1Xi+β2Di+β3(Xi×Di)+uiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + \beta _ { 2 } D _ { i } + \beta _ { 3 } \left( X _ { i } \times D _ { i } \right) + u _ { i } .
b. Yi=β0+β1Xi+β2(Xi×Di)+uiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + \beta _ { 2 } \left( X _ { i } \times D _ { i } \right) + u _ { i } .
c. Yi=(β0+Di)+β1Xi+uiY _ { i } = \left( \beta _ { 0 } + D _ { i } \right) + \beta _ { 1 } X _ { i } + u _ { i } .
d. Yi=β0+β1Xi+β2Di+uiY _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + \beta _ { 2 } D _ { i } + u _ { i } .

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