3. Suppose that we have a factor that records the three possible answers of the respondents in a survey, Yes/No/Undecided. We would like to use this factor as one predictor to explain a response y. Consider the method of coding the factor as two indicator variables: 1 = answer= Yes, 1 if 0 if answer= No, -1 if answer = Undecided 22 = 0 if answer = Yes, 1 if answer= No, -1 if answer Undecided and use a model of the form Ji Bo + B1z1i + B2 Z2i + Ei For a model of this form, Calculate the E(y) for the respondents who answer Yes, No and Undecided respectively?

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3. Suppose that we have a factor that records the three possible answers of the respondents in a survey, Yes/No/Undecided. We
would like to use this factor as one predictor to explain a response y . Consider the method of coding the factor as two indicator
variables:
21
=
1 if answer =
0 if
answer
-1 if answer = Undecided
=
Yes,
No,
22
=
0
if
1
if
-1 if
Yes,
answer =
answer = No,
answer = Undecided
and use a model of the form
Yi = Bo + B₁z1i + B₂ Z2i + Ei
For a model of this form, Calculate the E(y) for the respondents who answer Yes, No and Undecided respectively?
Transcribed Image Text:3. Suppose that we have a factor that records the three possible answers of the respondents in a survey, Yes/No/Undecided. We would like to use this factor as one predictor to explain a response y . Consider the method of coding the factor as two indicator variables: 21 = 1 if answer = 0 if answer -1 if answer = Undecided = Yes, No, 22 = 0 if 1 if -1 if Yes, answer = answer = No, answer = Undecided and use a model of the form Yi = Bo + B₁z1i + B₂ Z2i + Ei For a model of this form, Calculate the E(y) for the respondents who answer Yes, No and Undecided respectively?
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