Use of Dummy Variables in Testing for Equality between Sets of Coefficients in Two Linear Regressions: A Note

variables 1 and 0 can be used as aii alternative to the standard analysis of variance and covariance methods and the Chow test. The subsequent discussion proceeds as follows: Section II is devoted to a brief discussion of the Chow test. There is no need to discuss the analysis of variance aad covariance techniques since they are discussed in any standard text on statistics. The dummy variable method is presented in Section III. A numerical example is solved in Section IV, illustrating the Chow test and the dummy variable method. Some of the advantages of the dummy variable approach over the Chow test are discussed in Section V.