Consider a linear regression model where y represents the response variable, x is a quantitative explanatory variable, and dis a dummy variable. The model is estimated as ŷ = 15.9 + 4.5x – 3.3d. a. Interpret the dummy variable coefficient. Intercept shifts down by 3.3 units as d changes from 0 to 1. O Slope shifts down by 3.3 units as d changes from 0 to 1. O Intercept shifts up by 3.3 units as d changes from O to 1. O Slope shifts up by 3.3 units as d changes from 0 to 1. b. Compute ŷ for x = 4 and d= 1. (Round your answer to 1 decimal place.) c. Compute î for x= 4 and d= 0. (Round your answer to 1 decimal place.)

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Consider a linear regression model where y represents the response
variable, x is a quantitative explanatory variable, and dis a dummy
variable. The model is estimated as
ŷ = 15.9 + 4.5x – 3.3d.
a. Interpret the dummy variable coefficient.
Intercept shifts down by 3.3 units as d changes from 0 to 1.
Slope shifts down by 3.3 units as d changes from 0 to 1.
O Intercept shifts up by 3.3 units as d changes from 0 to 1.
Slope shifts up by 3.3 units as d changes from 0 to 1.
b. Compute ŷ for x = 4 and d= 1. (Round your answer to 1 decimal
place.)
c. Compute î for x= 4 and d= 0. (Round your answer to 1 decimal
place.)
Transcribed Image Text:Consider a linear regression model where y represents the response variable, x is a quantitative explanatory variable, and dis a dummy variable. The model is estimated as ŷ = 15.9 + 4.5x – 3.3d. a. Interpret the dummy variable coefficient. Intercept shifts down by 3.3 units as d changes from 0 to 1. Slope shifts down by 3.3 units as d changes from 0 to 1. O Intercept shifts up by 3.3 units as d changes from 0 to 1. Slope shifts up by 3.3 units as d changes from 0 to 1. b. Compute ŷ for x = 4 and d= 1. (Round your answer to 1 decimal place.) c. Compute î for x= 4 and d= 0. (Round your answer to 1 decimal place.)
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