Question

II. You are given the following linear regression model, where ??2 represents a qualitative variable with...

II. You are given the following linear regression model, where ??2 represents a qualitative variable with two outcomes {0,1} and ??1 is a quantitative variable:

?? = ?0 + ?1??1 + ?2??2 + ?i

1. The response function for Y using ??2 = 0 is: (5pts)

2. The response function for Y using ??2 = 1 is: (5pts)

3. Explain theoretically what does

a) ?1 indicates. (10pts)

b) ?0 indicates (10pts)

c) ?2 indicates (10pts)

Math   Statistics-And-Probability   
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