Question: Suburban dummy variable is 0 . 7 7 5 . What is the proper interpretation? ( a ) 7 7 . 5 % of the

Suburban dummy variable is 0.775. What is the proper interpretation?
(a)
77.5% of the variance in DieselConsumption is explained by RouteType = Suburban.
(b)
RouteLength explains 22.5% of the variance in DieselConsumption.
(c)
Suburban cannot be used as a dummy variable in a regression model.
(d)
If a vehicle takes a RouteType = Suburban, then DieselConsumption is predicted to increase by 0.775 gallons as compared to the base RouteType.
(e)
The correlation between DieselConsumpion and RouteType is 0.775.
If you have the variable RouteType (with values of CityCenter, Suburban, SmallTown, Rural, and Mixed) in column A in Excel, what is the correct Excel formula to create the dummy variable for Suburban in column B. The formula is for the first cell (B2), but can be copied down to create the dummy variable.
(a)
=A2^2
(b)
=DUMMY(A2)
(c)
=CHOOSE(A2,0,1)
(d)
=IF(A2="Suburban", 1,0)
(e)
=IF(A2="Suburban", 0,1)

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