Dummy

PMAP 4041: Problem Set 3
Grading: This assignment is worth a total of 34 points (5% of your overall grade).
Question 1: Please answer the following questions based on the information in Table 1. Table 1 shows the regression with grade and a set of dummy variables representing people’s race. Race would be five values: whites, Asians, blacks, Hispanic, and Indians.
    Table 1 Coefficientsa
    Model
    Unstandardized Coefficients
    Standardized Coefficients
    t
    Sig.
    
    B
    Std. Error
    Beta
    
    
    1
    (Constant)
    10.082
    .121
    
    83.238
    .000
    
    asian
    -.437
    .599
    -.022
    -.730
    .466
    
    black
    -2.168
    .275
    -.245
    -7.880
    .000
    
    hispanic
    -1.144
    .482
    -.073
    -2.371
    .018
    
    indian
    -1.847
    .802
    -.071
    -2.304
    .021
    a. Dependent Variable: grade
1. What is the regression equation (2 points)
Answer: Regression model is a statistical model which determine the relationship between dependent and independent variables. A linear regression line has an equation of the form
Dependent variable (Yi) = Intercept (β0) + slope of the line (β1) * Independent variable (Xi) + εi (random error team)
From the table 1, equations is:
Grade=10.082 + (– 0.437) *(Asian) + (– 2.168) *(Black) + (– 1.144) *(Hispanic) + (– 1.847) *(Indian)
2. What is the reference group? (2 points)
Answer: A 'reference' group/category is an identified as a category of comparison for the other categories. In other words, the other categories are compared to the reference. In the above (table 1) regression model, white is a reference group/category.
3. Interpret the...