A large apartment complex has three categories of apartments: 2 bedroom, which on average sell for $120K, 3 bedroom, which on average sell for $150K, and 4 bedroom, which on average sell for $200K.

The complex manager, who has recently learned about regression analysis with dummy variables runs a regression model with dependent variable Apartment Price; his independent variable is apartment categories mentioned above. Since there are three categories, she creates two dummy variables -- one each for 2 bedroom and 4 bedroom apartments.

Given this, the value of the intercept, dummy variable for 2 bedroom apartment category, and 4 bedroom category will be:

Group of answer choices

Intercept = $150K, coefficient for 2 bedroom dummy = -$30K, and coefficient for 4 bedroom dummy = $50K

Intercept = $150K, coefficient for 2 bedroom dummy = -$30K, and coefficient for 4 bedroom dummy = -$50K

It is not possible to estimate the intercept or dummy variable coefficients without running the regression model

Intercept = $150K, coefficient for 2 bedroom dummy = $30K, and coefficient for 4 bedroom dummy = -$50K

Intercept = $150K, coefficient for 2 bedroom dummy = $120K, and coefficient for 4 bedroom dummy = $200K