Consider a linear regression model where y represents the response variable and x, d 1 , and
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Consider a linear regression model where y represents the response variable and x, d1, and d2 are the predictor variables. Both d1 and d2 are dummy variables, each assuming values 1 or 0. A regression model with x, d1, d2, and d1d2, where d1d2 is the interaction variable, is estimated as yˆ = −1.34 + 1.02x + 3.08d1 − 1.29d2 + 0.58d1d2.
a. Compute ŷ for x = 5, d1 = 1, and d2 equal to 0 and 1.
b. Compute yˆ for x = 5, d1 = 0, and d2 equal to 0 and 1.
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Related Book For
Business Analytics Communicating With Numbers
ISBN: 9781260785005
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen
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