Consider A Linear Regression Model Of Y Vs A Quantitative Predictor Variable X Define A Dummy Variable And Set Up Th 1 (140.86 KiB) Viewed 65 times
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Consider a linear regression model of Y vs. a quantitative predictor variable X₁. Define a dummy variable, and set up the appropriate linear model that will allow for a jump discontinuity at a point x*. (Note: x* is known). (a) Define the dummy variables clearly. (b) Write the corresponding regression model. (c) What parameter would estimate the discontinuity jump? (d) What hypothesis is equivalent to testing that the jump is different from zero?
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