Hi to all(adsbygoogle = window.adsbygoogle || []).push({});

I need to seek help with regard to this question.

Show that the OLS estimator of the dummy coefficient ([tex]\delta[/tex]) in the regression model given by

Y[tex]_{i}[/tex]=[tex]\beta_{1}[/tex] + [tex]\delta[/tex]D[tex]_{i}[/tex] + [tex]\upsilon[/tex][tex]_{i}[/tex]

is equal to the difference between the sample mean of the observations for which D[tex]_{i}[/tex] = 1 and the sample mean of the observations for which D [tex]_{i}[/tex] =0.

You can click on the GIF file to see the question more properly.

So how do we go about solving this proof, and in mathematical form, how do we express the sample mean for observation which Di = 1 and Di = 0?

Hope I have presented myself clear!! Help really needed. Thanks!!!

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# Dummy Variable Coefficient Proof

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