Consider a linear regression m odel w h e re y represents th e response variable and x and d are th e explanatory variables;

d is a dum m y variable assum ing values 0 or 1. A m odel with th e dum m y d and th e interaction xd variables is estim ated as

ŷ = 5.2 + 0.9x + 1.4 d + 0.2xd.

a. C om pute ŷ fo r x = 1 0 and d = 1.

b. C om pute ŷ fo r x = 1 0 a n d d = 0.