Question: You are considering developing a regression equation relating a dependent variable to two independent variables. One of the variables can be measured on a ratio

You are considering developing a regression equation relating a dependent variable to two independent variables. One of the variables can be measured on a ratio scale, but the other is a categorical variable with four possible levels.
a. How many dummy variables are needed to represent the categorical variable?
b. Write a multiple regression equation relating the dependent variable to the independent variables.
c. Interpret the meaning of the coefficients in the regression equation.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a The number of dummyvariables number of levels 1 4 1 ... 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

Students Have Also Explored These Related Statistics Questions!

Q:

You are considering developing a regression equation relating a dependent variable to two independent variables. One of the variables can be measured on a ratio scale, but the other is a categorical...

Q:

You are considering developing a regression equation relating a dependent variable to two independent variables. One of the variables can be measured on a ratio scale, but the other is a categorical...

Q:

You are considering developing a regression equation relating a dependent variable to two independent variables. One of the variables can be measured on a ratio scale, but the other is a categorical...

Q:

Tables and Figures Module XXIII-B Slide 1 No Comments Slide 2 After collecting and analyzing the data from our research study, we are faced with the need to turn data into information, that is, we...

Q:

Statistics Project Description The goal of this culminating statistics project is to identify the factors that might have some influence on a chosen topic/variable. You will be collecting and...

Q:

$FL2@(#) IBM SPSS STATISTICS 64-bit Macintosh 23.0.0.0 ##########################Y@09 Oct 1618:27:54 #################### ### ##ID ####Participant ID ################# ### ##GENDER ####Gender...

Q:

The human immunodeficiency virus (HIV) is a lentivirus (which is a subgroup of retroviruses) that causes HIV infection and ultimately develops immunodeficiency syndrome (known as AIDS). AIDS is a...

Q:

LESSON 2 ASSIGNMENT CH 4 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) All of the following are limitations of direct consumer surveys...

Q:

Econometric: chapter 3: Multiple Regression Analysis Estimation could you do step by step? Problems 1 Using the data in GPA2 on 4,137 college students, the following equation was estimated by OLS:...

Q:

YOU DO NOT NEED TO READ THE FULL DOCUMENT, JUST SKIM AND SCAN THROUGH IT. READ THE QUESTIONS FIRST, THE QUESTIONS HAVE NOTHING TO DO WITH THE ACTUAL INFORMATION OF THE DOCUMENT. JUST SCAN AND GET THE...

Q:

The Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances, headquartered in Michigan, United States. It is the worlds leading major home appliance company....

Q:

A physical quantity of the dimensions of length is [c is that can be formed out of c, G and velocity of light, G is the universal constant of gravitation and e is charge]

Q:

Consider a binommial tree for a stock. At date t , the stock is priced at $ 3 0 per share and the riskneutral probability of an up move is equal to 0 . 4 3 5 . What is the risk neutral probability...

Q:

Consider a parallel-plate capacitor with circular plates of radius a separated by a distance 2L. A paper published in 1983 proposed a solution for the potential for this situation of the form Where J...

Q:

In exercise 5, the owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2)....

Q:

In exercise 5, the owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2)....

Q:

In exercise 1, the following estimated regression equation based on 10 observations was presented. = 29.1270 + .5906x1 + .4980x2 Here SST = 6724.125, SSR = 6216.375, sb1 = .0813, and sb2 = .0567. a....

Q:

3. EX.20.10.ALGO (Algorithmic) Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions):...

Q:

H. Richards Company, a calendar yearend company, reported the following balances: December 31, 2021 Inventory $65,000 December 31, 2020 $72,500 Accounts payable 18,750 12,500 Richards paid suppliers...

Q:

he cornerstone of all financial reporting in government. Also, requires the government to answer to the citizenry. A term used in GASB 34 to describe required governmentwide and fund financial...