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Hypothesis testing assesses whether data are inconsistent with a given hypothesis (usually a null hypothesis of no effect).
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Total effect of main variable and it's interaction with dummy
I am going to estimate the following model:
y=constant+b1(X)+b2(X)(Dummy)
We have daily data from 1990 to 2000. Dummy variable is equal to one for the daily data of year 2000, else zero. b1 is the mai …