Consider the model where x1 is a quantitative variable and x2 and x3 are dummy variables describing
Question:
Consider the model
where x1 is a quantitative variable and x2 and x3 are dummy variables describing a qualitative variable at three levels, using the coding scheme
The resulting least squares prediction equation is
a. What is the response line (equation) for E ( y ) when x2 = x3 = 0? When x2 = 1 and x3 = 0? When x2 = 0 and x3 = 1?
b. What is the least squares prediction equation associated with level 1? Level 2? Level 3? Plot these on the same graph.
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