Aresearcher conjectures that the unemployment rate has a different effect on traffic fatalities in the western states than in the other states. how would you test this hypothesis?
a. i would include a binary variable west (=1 if the state is in the west and 0 otherwise). then, i would test if the estimated coefficient for the binary variable is significant at a reasonable level.
b. i would include a binary variable west (=1 if the state is in the west and 0 otherwise), and an interaction term west *unemployment rate then, i would test if the estimated coefficient forthe interaction term is significant at a reasonable level.
c. i would compare the average number of fatalities in western states to the average number offatalities in non-western states.
d. i would include a binary variable west (=1 if the state is in the west and 0 otherwise), and an interaction term west*unemployment rate. then, i would test if the estimated coefficient forthe binary variable west is significant at a reasonable level.
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