Question: Consider a linear regression model where y represents the response variable, x is a numerical explanatory variable, and dis a dummy variable. The model is

Consider a linear regression model where y represents the response variable, x is a numerical explanatory variable, and dis a dummy variable. The model is estimated as 16.1+3.9x - 3.6d. a. Interpret the dummy variable coefficient. Intercept shifts down by 3.6 units as d changes from 0 to 1. Slope shifts down by 3.6 units as d changes from 0 to 1. Intercept shifts up by 3.6 units as d changes from 0 to 1. Slope shifts up by 3.6 units as d changes from 0 to 1. b. Compute y for x = 2 and d= 1. (Round your answer to 1 decimal place.) 9 c. Compute for x = 2 and d= 0. (Round your answer to 1 decimal place.)

Consider a linear regression model where y represents the response variable, x is a numerical explanatory variable, and d is a dummy variable. The model is estimated as y^=16.1+3.9x3.6d a. Interpret the dummy variable coefficient Intercept shifts down by 3.6 units as d changes from 0 to 1 . Slope shifts down by 3.6 units as d changes from 0 to 1 . Intercept shifts up by 3.6 units as d changes from 0 to 1 . Slope shifts up by 3.6 units as d changes from 0 to 1. b. Compute Y for x=2 and d=1, (Round your answer to 1 decimal place.) c. Compute y for x=2 and d=0. (Round your answer to 1 decimal place.)

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