Dummy variable hypothesis testing

by Kashmira Zambad   Last Updated December 07, 2017 10:19 AM

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In this dummy variable related question, I am confused with how to solve b part of the question. I have attached solution.I am confused as in this is correct or not. I am unable to understand the forming of equations in b. If we are testing for intercept equality why do we not have intercept dummy in the solution.



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