Suppose we are comparing the relationship between Y and X for a grouping variable Z that has been dummy coded. Specifically, we want to compare when Z-0 vs Z-1. We set up the following population regression model: Y = Bo + B,X + B2Z + B3XZ + e %3D This single model can be used to describe two lines: one for Z=0 and one for Z=1. a) Using notation consistent with the provided model, state the null and alternative hypotheses for testing for coincidence of the two resulting lines. b) Suppose we fail to reject the null hypothesis for the coincidence test. What does this mean in terms of the relationship between the two lines? How would the two lines compare on a graph?

MATLAB: An Introduction with Applications
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Chapter1: Starting With Matlab
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Suppose we are comparing the relationship between Y and X for a grouping variable Z that has been
dummy coded. Specifically, we want to compare when Z-0 vs Z-1. We set up the following population
regression model:
Y = Bo + B,X + B2Z + B3XZ + E
This single model can be used to describe two lines: one for Z=0 and one for Z=1.
a) Using notation consistent with the provided model, state the null and alternative hypotheses for
testing for coincidence of the two resulting lines.
b) Suppose we fail to reject the null hypothesis for the coincidence test. What does this mean in
terms of the relationship between the two lines? How would the two lines compare on a graph?
Transcribed Image Text:Suppose we are comparing the relationship between Y and X for a grouping variable Z that has been dummy coded. Specifically, we want to compare when Z-0 vs Z-1. We set up the following population regression model: Y = Bo + B,X + B2Z + B3XZ + E This single model can be used to describe two lines: one for Z=0 and one for Z=1. a) Using notation consistent with the provided model, state the null and alternative hypotheses for testing for coincidence of the two resulting lines. b) Suppose we fail to reject the null hypothesis for the coincidence test. What does this mean in terms of the relationship between the two lines? How would the two lines compare on a graph?
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