In the regression equation Å· = b0 + b1x + b2dx with a dummy variable d, when d changes from 0 to 1, the change in the slope of the corresponding lines is given by ________. Multiple Choice a) b0 b) b0 + b1 c) b2 d) b0 + b2
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Let's call them Group 0 (when d=0) and Group 1 (when d=1). The regression equation can be written as: yˆ = b0 + b1x + b2d For Group 0 (when d=0), the equation becomes: yˆ = b0 + b1x + b2(0) yˆ = b0 + b1x For Group 1 (when d=1), the equation becomes: yˆ = b0 Show more…
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