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An analysis was performed where Y was regressed against X1 and X2. The regression was significant as well as the coefficients
What is the value of b2, the coefficient of the dummy variable? O 4.5 0 -4.5 O 1 ОО
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Answer #1

The line is touch when x2=1 at y= 3

The line is touch at y=7.5 when x2=0

Therefore the coefficient of dummy variable = 3-7.5 =-4.5

Hence the -4.5 is correct. Because at present value of dummy variable the value is decreased and absence ot increases.

( Hope this will help you and like you. If any difficulty feel free to comment. Thank you)

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