Using 50 observations, the following regression output is obtained from estimating y = 0 +

Using 50 observations, the following regression output is obtained from estimating y = β₀ + β₁x + β₂d₁ + β₃d₂ + ε.

a. Compute ŷ for x = 250, d₁ = 1, and d₂ = 0; compute for x = 250, d₁ = 0, and d₂ = 1.

b. Interpret d₁ and d₂. Are both dummy variables individually significant at the 5% level? Explain.

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t Stat Coefficients Standard Error p-value -2.75 Intercept -0.61 0.23 0.007 3.12 1.04 3.01 0.003 15.65 -0.85 -13.22 0.401 d1 5.35 1.25 0.000 d2 4.27