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Consider the Model y=β0+β1x1+β2x2+β3x3+εy = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \varepsilon

Question 17

Multiple Choice

Consider the model y=β0+β1x1+β2x2+β3x3+εy = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \varepsilon where x1x _ { 1 } is a quantitative variable and x2x _ { 2 } and x3x _ { 3 } are dummy variables describing a qualitative variable at three levels using the coding scheme x2={1 if level 20 otherwise x3={1 if level 30 otherwise x _ { 2 } = \left\{ \begin{array} { l l } 1 & \text { if level } 2 \\ 0 & \text { otherwise } \end{array} \quad x _ { 3 } = \left\{ \begin{array} { l l } 1 & \text { if level } 3 \\ 0 & \text { otherwise } \end{array} \right. \right.

The resulting least squares prediction equation is y^=36.7+1.3x1+5.4x2+3.2x3\hat { y } = 36.7 + 1.3 x _ { 1 } + 5.4 x _ { 2 } + 3.2 x _ { 3 } . What is the least squares regression equation associated with level 2?


A) y^=39.9+1.3x1\hat { y } = 39.9 + 1.3 x _ { 1 }
B) y^=38.0+5.4x2\hat { y } = 38.0 + 5.4 x _ { 2 }
C) y^=39.9+5.4x2\hat { y } = 39.9 + 5.4 x _ { 2 }
D) y^=42.1+1.3x1\hat { y } = 42.1 + 1.3 x _ { 1 }

Correct Answer:

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