Consider the population regression function Y_it = beta_0 + beta_1 middot X_it +

Question

Consider the population regression function Y_it = beta_0 + beta_1 middot X_it + gamma_2 D2_i + gamma_3 D3_i +... + gamma_n middot Dn_i + u_it, where i is people and t is years. What is the slope and intercept for person 5 in time period 3? W hat is the slope and intercept for person 5 in time period 12? What is the slope and intercept for person 8 in time period 3? What is the slope and intercept for person 8 in time period 12? If there were time effects in the model, would answers from part a through d be different? Explain. Consider the the linear probability model Y_i = beta_0 + beta_1 middot X_i + u_i, where P(Y_i = |X_i) = beta_0 + beta__1 middot X_i.

Explanation / Answer

e) we have considered the regression model by takeing into account the time factor,more over frob a to d we vary person as well as time.

hence by takeing time effect it does not effect the regression as we al ready considered the time factor.

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