Consider a regression study involving a dependent variable y, a quantitative independent variable x1, and a categorical

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Consider a regression study involving a dependent variable y, a quantitative independent variable x1, and a categorical independent variable with three possible levels (level 1, level 2, and level 3).

a. How many dummy variables are required to represent the categorical variable?

b. Write a multiple regression equation relating x1 and the categorical variable to y.

c. Interpret the parameters in your regression equation.

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Statistics For Business And Economics

ISBN: 9780324783247

11th Edition

Authors: Thomas A. Williams, Dennis J. Sweeney, David R. Anderson

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