Consider a linear regression model where y represents the response variable, x is a quantitative explanatory variable, and dis a dummy variable. The model is estimated as ŷ = 15.9 + 4.5x – 3.3d. a....


Consider a linear regression model where y represents the response<br>variable, x is a quantitative explanatory variable, and dis a dummy<br>variable. The model is estimated as<br>ŷ = 15.9 + 4.5x – 3.3d.<br>a. Interpret the dummy variable coefficient.<br>Intercept shifts down by 3.3 units as d changes from 0 to 1.<br>Slope shifts down by 3.3 units as d changes from 0 to 1.<br>O Intercept shifts up by 3.3 units as d changes from 0 to 1.<br>Slope shifts up by 3.3 units as d changes from 0 to 1.<br>b. Compute ŷ for x = 4 and d= 1. (Round your answer to 1 decimal<br>place.)<br>c. Compute î for x= 4 and d= 0. (Round your answer to 1 decimal<br>place.)<br>

Extracted text: Consider a linear regression model where y represents the response variable, x is a quantitative explanatory variable, and dis a dummy variable. The model is estimated as ŷ = 15.9 + 4.5x – 3.3d. a. Interpret the dummy variable coefficient. Intercept shifts down by 3.3 units as d changes from 0 to 1. Slope shifts down by 3.3 units as d changes from 0 to 1. O Intercept shifts up by 3.3 units as d changes from 0 to 1. Slope shifts up by 3.3 units as d changes from 0 to 1. b. Compute ŷ for x = 4 and d= 1. (Round your answer to 1 decimal place.) c. Compute î for x= 4 and d= 0. (Round your answer to 1 decimal place.)

Jun 11, 2022
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