More on dummy Interactions o Formally, the model is y-Bo+ smale S,hsgrad+ &3 colgrad Emale hsgrad Smale colgrad+ Bx+ u, then, for example If male =0 and hsgrad =0 and colgrad =0 Bo+ Bx+u o If male=0 and hsgrad=1 and colgrad=0 y=Bo 8+hsgt rad Bx+ o If male= 1 and hsgrad =0 and colgrad 1=1 by=Bo+s,male +s,colgrad +Smale*colgrad Bx+u Economics 20- Prof anderson 8Economics 20 - Prof. Anderson 8 More on Dummy Interactions Formally, the model is y = b0 + d1male + d2hsgrad + d3colgrad + d4male*hsgrad + d5male*colgrad + b1x + u, then, for example: If male = 0 and hsgrad = 0 and colgrad = 0 y = b0 + b1x + u If male = 0 and hsgrad = 1 and colgrad = 0 y = b0 + d2hsgrad + b1x + u If male = 1 and hsgrad = 0 and colgrad = 1 y = b0 + d1male + d3colgrad + d5male*colgrad + b1x + u