Consider a regression study involving a dependent variable y, a quantitative
independent variable x1, and a categorical independent variable with five levels
(i.e., five possible value outcomes).
Write a multiple regression equation relating x₁ and the categorical variable to y.
HINT: Remember to use dummy variable(s).
E(y) = βo + β1x1 + (β2+ β3+34 + B5 + β6)x2
E(y) = βο + β1x1 + B2x2 + β3x3 + B4x4 + B5x5
E(y) = βο + β1x1 + β2x2
y = Bo+B1x1+B2x2 + B3x3 + B4X4 + B5x5 + €
E(y) = βο + β121 + B2x2 + β3x3 + B4X4
Oy = Bo+B121 + B2x2 + 3x3 + B4X4 + €