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What is a dummy variable? A dummy variable is a variable that t... | Filo
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SOLVED:3.2The dummy variables are widely used in econometrics.Critically explain what the dummy variables' trap is and propose solutions to mitigate this issue. Give an example using a published academic paper and also explain the interpretation of the dummy variable In this example.Evaluate the disadvantages of the Linear Probability Model (LPM):(15%) (maximum 600 words)
SOLVED:3.2The dummy variables are widely used in econometrics.C…
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