For years, import cars have held an advantage over domestic automobiles according to data collected by J.D.

Question:

For years, import cars have held an advantage over domestic automobiles according to data collected by J.D. Power and Associates, which generates a widely respected report on initial quality. The 2011 data showed a general decrease in quality due primarily to voice-activated electronic systems that didn€™t work as well as advertised. The data are contained in the file PP100. Initial quality is measured by the number of problems per 100 vehicles (PP100).
a. Produce a regression equation to predict the PP100 for vehicles in the model

where x1 = 1 if considered an Asian brand and 0 if not and x2 = 1 if considered a European car and 0 if not.
b. Interpret the parameters b0, b1, and b2 in the model given in part a.
c. Conduct a test of hypothesis using the model in part a to determine if the average PP100 is the same for the three groups of companies.