Using 50 observations, the following regression output is obtained from estimating y = BO + B1X + B201 + B3d2 + ε. Intercept х di d2 Coefficients -0.68 3.08 -12.48 5.75 Standard Error 0.25 1.10 15.60 t Stat -2.72 2.80 -0.80 4.60 p-value 0.0092 0.0074 0.4278 0.0000 1.25 a. Compute y for x= 255, d1 = 1, and d2 = 0; compute y for x = 255, d1 = 0, and d2 = 1. (Round your answers to 2 decimal places.) x = 255, di = 1 and d2 = 0 x = 255, di = 0 and d2 = 1 b-1. Interpret dy and d2. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? When di = 1, ġ is 12.48 units greater than when dı = , holding everything else constant. ? When d2 = 1, y is 5.75 units greater than when d2 = 0, holding everything else constant. ? When di = 1, ġ is 12.48 units less than when d1 = 0, holding everything else constant. 1 When d2 = 1, y is 5.75 units less when d2 = 0, holding everything else constant.
b-2. Are both dummy variables individually significant at the 5% level? Yes, both dummy variables are individually significant at the 5% level. No, none of the dummy variables are individually significant at 5% level. O No, only the dummy variable d2 is significant at 5% level. O No, only the dummy variable di is significant at 5% level.
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