Question

Consider the regression model y = Bo + B1X1 + B2X2 + ε where Xy and X2 are as defined below. Xq = A quantitative variable 1 if x2 <20 x2 = { 0 if X, 220 The estimated regression equation ý = 23.9+ 5.4x4 +6.9x, was obtained from a sample of 20 observations. Complete parts a through d below. a. Provide the estimated regression equation for instances in which X4 <20. y=1( ) x (Type integers or decimals.) b. Determine the value of ý when xy = 5. (Type an integer or a decimal.)

Answer 1

If

1 < 20 ፥ 2 = 1

û = 23.9 +5.4x1 + 6.9 *1 = 23.9 +5.4x1 + 6.9

û = 30.8 +5.421

In part A) we need to enter 30.8 in first box and 5.4 in second box.

b)) = 30.8 + 5.4 *5 = 57.8

So, 57.8 is the answer for part b)

c) if

x1 > 20 + x2 = 0

û = 23.9 +5.4.x1 + 6.9 *0 = 23.9 + 5.4x1

In part C) we need to enter 23.9 in first box and 5.4 in second box.

d)

x1 = 25

û = 23.9 + 5.4 * 25 = 158.9

So, 158.9 is the answer for part d).

Please comment if any doubt. Thank you.