# Consider a linear regression model where y represents the response variable and x, d 1 , and

## Question:

Consider a linear regression model where y represents the response variable and x, d_{1}, and d_{2} are the predictor variables. Both d_{1} and d_{2} are dummy variables, each assuming values 1 or 0. A regression model with x, d_{1}, d_{2}, and d_{1}d_{2}, where d_{1}d_{2 }is the interaction variable, is estimated as yˆ = −1.34 + 1.02x + 3.08d_{1} − 1.29d_{2} + 0.58d_{1}d_{2}.

a. Compute ŷ for x = 5, d_{1} = 1, and d_{2} equal to 0 and 1.

b. Compute yˆ for x = 5, d_{1} = 0, and d_{2} equal to 0 and 1.

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**Related Book For**

## Business Analytics Communicating With Numbers

**ISBN:** 9781260785005

1st Edition

**Authors:** Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen