Using 50 observations, the following regression output is obtained from estimati

Question

Using 50 observations, the following regression output is obtained from estimating y = ?0 + ?1x + ?2d1 + ?3d2 + ?.

A) Compute y-hat for x = 262, d1 = 1, and d2 = 0; then compute y-hat for x = 262, d1 = 0, and d2 = 1.(Round intermediate calculations to 4 decimal places and final answers to 2 decimal places.)

Interpret d1.

Are both dummy variables individually significant at the 5% level?

A) Compute y-hat for x = 262, d1 = 1, and d2 = 0; then compute y-hat for x = 262, d1 = 0, and d2 = 1.(Round intermediate calculations to 4 decimal places and final answers to 2 decimal places.)

Standard t Stat -2.25 2.45 -0.80 3.68 Coefficients Error -0.81 2.94 -13.00 5.52 0.36 1.20 16.25 1.50 p-value 0.0293 0.0182 0.4278 0.0006 Intercept d2

Explanation / Answer

A)x=262,d1=1,d2=0->yhat=756.47

x=262,d1=0,d2=1->yhat=774.99

B1)with d1=1,yhat is 13 units less keeping all other variables constant.

b2)No,only d2 is significant at 5% level, as p<0.05

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