There are 2 DIFFERENT Problems that need to be worked out. Problem 1 Consider a
ID: 3061242 • Letter: T
Question
There are 2 DIFFERENT Problems that need to be worked out.
Problem 1
Consider a linear regression model where y represents the response variable and x and d are the explanatory variables; d is a dummy variable assuming values 0 or 1. A model with the dummy d and the interaction xd variables is estimated as y-hat = 4.5 + 0.95x + 1.5d + 0.22xd.
a.
Compute y-hat for x = 10 and d = 1. (Round intermediate calculations to 4 decimal places and final answer to 1 decimal place.)
y-hat
b.
Compute y-hat for x = 10 and d = 0. (Round intermediate calculations to 4 decimal places and final answer to 1 decimal place.)
y-hat
Problem 2
Using 20 observations, the following regression output is obtained from estimating y = 0 + 1x + 2d + 3xd + .
Coefficients
Standard
Error
t Stat
p-value
Intercept
14.94
3.60
4.15
0.0008
x
2.37
0.60
3.95
0.0000
d
5.58
3.10
1.80
0.0907
xd
1.33
0.50
2.66
0.0171
a.
Compute y-hat for x = 10 and d = 1; then compute y-hat for x = 10 and d = 0. (Round intermediate calculations to 4 decimal places and final answers to 2 decimal places.)
y-hat
x = 10 and d = 1
x = 10 and d = 0
Consider a linear regression model where y represents the response variable and x and d are the explanatory variables; d is a dummy variable assuming values 0 or 1. A model with the dummy d and the interaction xd variables is estimated as y-hat = 4.5 + 0.95x + 1.5d + 0.22xd.
Explanation / Answer
sOLUTIONa:
y-hat = 4.5 + 0.95x + 1.5d + 0.22xd
x=10 and d=1
y hat= 4.5 + 0.95*10+ 1.5*1 + 0.22*10*1
yhat=17.7
ANSWER:17.7
b.
Compute y-hat for x = 10 and d = 0. (Round intermediate calculations to 4 decimal places and final answer to 1 decimal place.)
y-hat = 4.5 + 0.95x + 1.5d + 0.22xd
x=10 and d=0
y-hat= 4.5 + 0.95*10+ 1.5*0 + 0.22*10*0
y-hat=14
ANSWER:14
b.
Compute y-hat for x = 10 and d = 0. (Round intermediate calculations to 4 decimal places and final answer to 1 decimal place.)
y-hat = 4.5 + 0.95x + 1.5d + 0.22xd
x=10 and d=0
y-hat= 4.5 + 0.95*10+ 1.5*0 + 0.22*10*0
y-hat=14
ANSWER:14
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.