Consider a linear regression model where y represents the response variable and x and d are the
Question:
Consider a linear regression model where y represents the response variable and x and d are the explanatory variables;
d is a dummy variable assuming values 0 or 1. The model is estimated as
ŷ = 14.8 + 4.4x – 3.8d.
a. Interpret the dummy variable coefficient.
b. Compute ŷ fo r x = 3 and d = 1.
c. Compute ŷ fo r x = 3 and d = 0.
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Related Book For
Business Statistics Communicating With Numbers
ISBN: 9780071317610
1st Edition
Authors: Kelly Jaggia
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