Question: Rather than use a dummy variable (D, coded as 1 for men and 0 for women) as the explanatory variable in a regression of responses

Rather than use a dummy variable (D, coded as 1 for men and 0 for women) as the explanatory variable in a regression of responses of men and women, a model included an explanatory variable X coded as +1 for men and -1 for women. (This type of indicator variable is sometimes used rather than a dummy variable.)
(a) What is the difference between the scatterplot of Y on X and the scatterplot of Y on D?
(b) Does the regression of Y on D have the same R2 as the regression of Y on X?
(c) In the regression of Y on X, what is the fitted value for men? For women?
(d) Compare b0 and b1 in the regression of Y on D to b0 and b1 in the regression of Y on X.

Step by Step Solution

3.32 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a It helps to answer the following questions to think about the plots first The conte... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

489-M-S-V-A (674).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!