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. The model is estimated as

ŷ = 14.8 + 4.4x – 3.8d.

a. Interpret the dummy variable coefficient.

b. Compute ŷ fo r x = 3 and d = 1.

c. Compute ŷ fo r x = 3 and d = 0.

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