Question

Consider the following binary variable version of the fixed effects model. Each regressor Dj is a binary variable that equals 1 when i j and 0 otherwise. Note that the binary variable D1, for the first group is arbitrarily omitted Use the regression in the equation above and the tool palette to the right to answer the following questions What is the slope and intercept for entity 1 in time period 2? The slope of entity 1 in time period 2 is B1 The intercept of entity 1 in time period 2 is Po (Properly format your expressions using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a subscript can be created with the_character.) What is the slope and intercept for entity 3 in time period 17 The slope of entity 3 in time period 1 is P1 The intercept of entity 3 in time period 1 is Po+Y3 (Properly format your expressions using the tools in the palette.) What is the slope and intercept for entity 2 in time period 2 The slope of entity 2 in time period 2 is The intercept of entity 2 in time period 2 is

Answer 1

The slope of entity l in time period 2 is ß1 The intercept of entity l in times period 2 is 30+γ2 The slope of entity 3 in time period 1 is A The intercept of entity 3 in times period 1 is Bo The slope of entity 2 in time period 2 is B The intercept of entity 2 in times period 2 is 30+γ2 since Dji 1 if j-i -0 otherwise