Consider a linear regression model where y represents the response variable, x i

Question

Consider a linear regression model where y represents the response variable, x is a quantitative explanatory variable, and d is a dummy variable. The model is estimated as

Compute Y-hat for x = 3 and d = 1. (Round your final answer to 1 decimal place.)

ComputeY-hat for x = 3 and d = 0. (Round your final answer to 1 decimal place.)

Y-hat

Consider a linear regression model where y represents the response variable, x is a quantitative explanatory variable, and d is a dummy variable. The model is estimated as

Explanation / Answer

a. Intercept shifts down by 3.8 units as d changes from 0 to 1 because when the dummy varibale is 1 new line equation is yhat=4.4x+11

b. yhat=14.8+4.4*3-3.8*1=24.2

c.yhat=14.8+4.4*3-3.8*0=28

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