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You are interested in examining the factors that determine the average length of

ID: 3063421 • Letter: Y

Question

You are interested in examining the factors that determine the average length of stay in a hospital across provinces. You collect data on the following variables: Y = province-wide average hospital stay X2 = median provincial income X3 = 1 if the province is one of the Atlantic provinces, 0 otherwise X4 = 1 if the province is in Quebec or Ontario, 0 otherwise X5 = 1 if the province is in the Prairies, 0 otherwise X6 = 1 if the province is BC or Alberta, 0 otherwise Which of the following model specifications would work for the data provided above?

A.

B. Y = 1 + 2X2 + 3X3 + 4X4 + 6X6

C. Y = 2X2 + 3X3 + 4X4 + 6X6

D. Y = 1 + 2X2 + 3X3 + 4X4 + 5X5 + 6X6

Explanation / Answer

Here we have given dependent variable Y=province-wide average hospital stay and which is continuous.

And independent variables are,

X2=median provincial income (continuous)

X3=1 if the province is in Quebec or Ontario, 0 otherwise (Catagorical)

X4 = 1 if the province is in Quebec or Ontario, 0 otherwise (Catagorical)

X5 = 1 if the province is in the Prairies, 0 otherwise (Catagorical)

X6 = 1 if the province is BC or Alberta, 0 otherwise (Catagorical)

Hence appropriate regression model is,

Y = 1 + 2X2 + 3X3 + 4X4 + 5X5 + 6X6

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