These are just my answers, not the solution.
but is the second interpretation correct? what happens if X3 increases by one unit? do I need to look at the first derivative with regard to a change of X3?
I have the following output and I really need your help with this:
The questions are:
a) Regressor X3 is a dummy variable (X3 = 1 if individual belongs to group 1). What
interpretation can you give to the corresponding coefficient?
b) The dependent variable was generated by the...