a. Explanation Calculation: In general for a model relating to E ( y ) one qualitative independent variable with k variables, the model would be, E ( y ) = β 0 + β 1 x 1 + β 2 x 2 + ... + β k − 1 x k − 1 Then the variable x i is the dummy variable for i + 1 level. That is, x i = { 1 if y is observed level i + 1 ( level A ) 0 otherwise < b. To determine To write: The model for three different second-orders with each level of the qualitative variable.

Statistics for Business and Economics (13th Edition)

13th Edition

ISBN: 9780134506593

Author: James T. McClave, P. George Benson, Terry Sincich

Publisher: PEARSON

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Chapter 12, Problem 12.140LM

To determine

To write: A first-order model.

To determine

To write: The model for three different second-orders with each level of the qualitative variable.

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Chapter 12, Problem 12.139LM

Chapter 12, Problem 12.141LM

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Chapter 12 Solutions

Statistics for Business and Economics (13th Edition)

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Solution Summary: The author explains the first-order model of E(y), where x_i is the dummy variable for i+1 level.

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To write: A first-order model.

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Chapter 12 Solutions