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Suppose that we wish to investigate differences in credit card balance among different ethnicity. We create two dummy variables, for the ethnicity variable: if ith

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Suppose that we wish to investigate differences in credit card balance among different ethnicity. We create two dummy variables, for the ethnicity variable: if ith person is Asian if ith person is not Asian' Xa ={ { 1 Xi2 if ith person is Caucasian if ith person is not Caucasian Then both of these variables can be used in the linear regression equation, in order to obtain the model Yi = Be + B1Xi1 + B2Xiz + x = if ith person is Asian if ith person is Caucasian if ith person is African American where y, is credit card balance of ith person. a. Fill out the three blanks above with addition and subtraction of Bo, B1, B2, and i. b. What is the meaning of Bo? (your answer should not be intercept) C. What is the meaning of B? (your answer should not be slope) d. What is the meaning of B2? (your answer should not be slope) Suppose that we wish to investigate differences in credit card balance among different ethnicity. We create two dummy variables, for the ethnicity variable: if ith person is Asian if ith person is not Asian' Xa ={ { 1 Xi2 if ith person is Caucasian if ith person is not Caucasian Then both of these variables can be used in the linear regression equation, in order to obtain the model Yi = Be + B1Xi1 + B2Xiz + x = if ith person is Asian if ith person is Caucasian if ith person is African American where y, is credit card balance of ith person. a. Fill out the three blanks above with addition and subtraction of Bo, B1, B2, and i. b. What is the meaning of Bo? (your answer should not be intercept) C. What is the meaning of B? (your answer should not be slope) d. What is the meaning of B2? (your answer should not be slope)

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