In a multiple regression analysis, the regression equation is obtained. The variable is quantitative variable, and the variable is a dummy variable with values 0 and 1. Given this information, we can interpret the slope coefficient (-3) on variable as follows: Holding constant, if the value of is changed from 0 to 1, the average value of y will decrease by 3 units.

Question

In a multiple regression analysis, the regression equation  is obtained. The  variable is quantitative variable, and the  variable is a dummy variable with values 0 and 1. Given this information, we can interpret the slope coefficient (-3) on variable  as follows: Holding  constant, if the value of  is changed from 0 to 1, the average value of y will decrease by 3 units.

Quizplus · Accepted Answer

This interpretation of the slope coefficient on the dummy variable is correct. It means that when the dummy variable changes from 0 to 1, holding all other variables constant, the predicted value of y (the dependent variable) will decrease by 3 units on average.

In a Multiple Regression Analysis, the Regression Equation Is