Question: We ran a regression to test how demand for sunglasses varies across cities at LensCrafters. We study Toronto, Montreal, Ottawa and Vancouver. We used dummy
We ran a regression to test how demand for sunglasses varies across cities at LensCrafters. We study Toronto, Montreal, Ottawa and Vancouver. We used dummy variables (the excluded dummy variables is Montreal) and obtained the following regression equation:
Demand = 45+10(Toronto)-5(Ottawa)+5(Vancouver)
Suppose we decided to exclude the variable Vancouver, as opposed to the variable Montreal. In this case, what would be the coefficient of the variable Toronto?
A. 50
B. -5
C. 10
D. 5
E. 0
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