Consider the following regression model: Humidity = β₀ + β₁ Temperature + β₂ Spring + β₃Summer + β₄ Fall + β₅ Rain + ε,
Where the dummy variables Spring,Summer,and Fall represent the qualitative variable Season (spring,summer,fall,winter) ,and the dummy variable Rain is defined as Rain = 1 if rainy day,Rain = 0 otherwise.Assuming the same temperature and precipitation condition,what is the difference between the predicted humidity for summer and fall days?

Question

Quizplus · Accepted Answer

The difference between the predicted humidity for summer and fall days can be found by subtracting the coefficient of the Fall dummy variable (β₄) from the coefficient of the Summer dummy variable (β₃). Therefore, the correct choice is B.

Consider the Following Regression Model: Humidity = β0 + β1

Consider the Following Regression Model: Humidity = β₀ + β₁