You fit a linear model using the following two-level categorical variables:
with the equation:
This model produced the following parameter estimates:
Another actuary modeled the same underlying data, but coded the variables differently as such:
with the equation:
Afterwards you made a comparison of the individual parameter estimates in the two models.
Calculate how many pairs of coefficient estimates () switched signs, and how many pairs of estimates stayed identically the same, when results of the two models are compared.
A
1 sign change, 0 identical estimates
B
1 sign change, 1 identical estimate
C
2 sign changes, 0 identical estimates
D
2 sign changes, 1 identical estimate
E
The answer is not given by (A), (B), (C), or (D)
Exhibit