Define I1 as an interaction variable created from two binary variables, D1 and D2. In a regression

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Define I1 as an interaction variable created from two binary variables, D1 and D2. In a regression model containing only the variables D1, D2 and I1:

a. The coefficient on I1 is the effect of D2 on Y, holding all other independent variables constant.

b. The constant coefficient is the average value of Y.

c. The coefficient on I1 is the Y intercept term of the regression in the case that D1 and D2 both equal 1.

d. The constant coefficient is the average value of Y when D1 and D2 are both zero.

Related Book For answer-question

Basic Business Statistics Concepts and Applications

ISBN: 978-0134684840

14th edition

Authors: Mark L. Berenson, David M. Levine, Kathryn A. Szabat, David F. Stephan

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Posted Date: Mar 30, 2022 08:16 AM

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Define I1 as an interaction variable created from two binary variables, D1 and D2. In a regression

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Answer The correct answer is an option C The coefficient on I1 is the Y inte... View the full answer

Basic Business Statistics Concepts and Applications

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