# 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.

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