Consider a linear regression model where y represents the response variable, x is a quantitative explanatory variable, and d is a dummy variable. The model is estimated as
= 14.8 + 4.4x - 3.8d.
a. Interpret the dummy variable coefficient.
b. Compute
for x = 3 and d = 1.
c. Compute
for x = 3 and d = 0.