Question: Consider the model: y = β0 + β1x1 + β2x2 + β3x3 + ε where x1 is a quantitative variable and x2 and x3 are

Consider the model:
y = β0 + β1x1 + β2x2 + β3x3 + ε
where x1 is a quantitative variable and x2 and x3 are dummy variables describing a qualitative variable at three levels using the coding scheme
Consider the model:
y = β0 + β1x1 + β2x2 +

The resulting least squares prediction equation is
= 44.8 + 2.2x1 + 9.4x2 + 15.6x3
a. What is the response line (equation) for E(y) when x2 = x3 = 0? When x2 = 1 and x3 = 0? When x2 = 0 and *3 = 1?
b. What is the least squares prediction equation associated with level 1? Level 2? Level 3? Plot these on the same graph.

if level 2 otherwise 1 if level 3 0 otherwise 1 2

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a When x 2 x 3 0 Ey 0 1 x 1 When x 2 1 and x 3 0 Ey 0 1 ... View full answer

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