# Question: Using 50 observations the following regression output is obtained from

Using 50 observations, the following regression output is obtained from estimating y = β0 + β1x + β2d1 + β3d2 + .

a. Compute for x = 250, d1 = 1 and d2 = 0; then compute for x = 250, d1 = 0 and d2 = 1.

b. Interpret d1 and d2. Are both dummy variables individually significant at the 5% level?Explain.

a. Compute for x = 250, d1 = 1 and d2 = 0; then compute for x = 250, d1 = 0 and d2 = 1.

b. Interpret d1 and d2. Are both dummy variables individually significant at the 5% level?Explain.

**View Solution:**## Answer to relevant Questions

House price y is estimated as a function of the square footage of a house x and a dummy variable d that equals 1 if the house has ocean views. The estimated house price, measured in $1,000s, is given by = 118.90 + 0.12x + ...In the United States, baseball has always been a favorite pastime and is rife with statistics and theories. While baseball purists may disagree, to an applied statistician no topic in baseball is too small or hypothesis too ...Consider the following sample data:a. Find the sample regression line, = b0 + b1x.b. Construct the 95% confidence interval for E(y) if x = 15.c. Construct the 95% prediction interval for y if x =15.Access the data, labeled Professor_Salary, from the text website. These data were used in the introductory case of this chapter. Recall that we estimated our preferred model as = 39.43 + 1.24x + 13.89d, where y represents ...In August 2010, the Department of Commerce reported that economic weakness persists across the country with consumer spending continuing to stagnate. The government is considering various tax benefits to stimulate consumer ...Post your question