o 2. ANOVA model. Regression models that contain only dummy explanatory variables are called analysis-of-variance (ANOVA)models B,+BD. +u sociology, psychology, education, market research elds of anoVa models are usually used in the fi (1) Dummy variables generally tal ke on values of l or 0, they are nonstochastic; that is, their values are fixed (2) Estimation Dummy explanatory variables do not pose any new estimation problems, under the assumptions of CLRM, we can use the customary ols method to estimate the parameters of models that contain dummy variables⚫ 2. ANOVA model: ⚫ ——Regression models that contain only dummy explanatory variables are called analysis-of-variance (ANOVA) models. Yi = B1+B2Di +ui ANOVA models are usually used in the fields of sociology, psychology, education, market research. （1）Dummy variables generally take on values of 1 or 0, they are nonstochastic; that is, their values are fixed. （2）Estimation: Dummy explanatory variables do not pose any new estimation problems, under the assumptions of CLRM, we can use the customary OLS method to estimate the parameters of models that contain dummy variables