Question: Consider a linear regression model where y represents the response variable and x and d are the explanatory variables; d is a dummy variable assuming

Consider a linear regression model where y represents the response variable and x and d are the explanatory variables; d is a dummy variable assuming values 0 or 1. A model with the dummy variable d and the interaction variable xd is estimated as Ŷ = 5.2 + 0.9x + 1.4d + 0.2xd.

a. Compute Ŷ for x =10 and d = 1.

b. Compute Ŷ for x =10 and d = 0.

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