Statistics simple regression question

Posted on 2014-04-03 13:20:00 in Economics by KATIE

The following simple regression model is augmented with a dummy variable, Di,

yi=a+bxi+cDi+d(Di * xi)+ei i=1,...n



Assume that all estimated coefficients are different from zero. Draw a graph depicting the regression line when Di=0 and when Di=1. Assume that:

a hat > 0, b hat <0, c hat <0, and d hat > 0



Label all portions of the graph.





PLEASE HELP ME:(

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