Use the hard drive data for 2006 and 2007 in Table 1.6 to estimate the model Y

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Use the hard drive data for 2006 and 2007 in Table 1.6 to estimate the model Y = α + β1D + β2X + β3DX + ε, where Y = price, X = size, D = 0 in 2006, and D = 1 in 2007.

a. Interpret your estimate of the coefficient β1.

b. Interpret your estimate of the coefficient β2.

c. Interpret your estimate of the coefficient β3.

d. Calculate a 95 percent confidence interval for β3.image text in transcribed

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