Consider the accompanying set of dependent and independent variables. The variab

Question

Consider the accompanying set of dependent and independent variables. The variable

x 3x3

is qualitative with

Hequals=High,

Mequals=Medium,

and

Lequals=Low.

Complete parts a and b below.

Using technology, construct a regression model using all three independent variables. (Let variable

Cond 1Cond1

be one of the dummy variables for

x 3x3.

Assign a 1 to High for this variable. Let

Cond

be another dummy variable for

x 3

Assign a 1 to Medium for this variable.)

Complete the regression equation for the model below, where

x 3

represents the dummy variable

Cond

and

x 4x4

represents the dummy variable

Cond 2

y   x1   x2   x3
64   47   72   H
65   38   63   L
73   44   78   M
43   37   52   H
42   26   43   M
45   24   47   L
36   25   36   L
21   19   17   M
6   7   15   H

please give me the equation !

Explanation / Answer

The data including dummy variable will be:

The statistical software output for the regression equation is:

Multiple linear regression results:
Dependent Variable: y
Independent Variable(s): x1, x2, x3 (High = 1), x4 (Medium = 1)
y = 1.7883071 + 0.421737 x1 + 0.71194493 x2 - 9.9011112 x3 - 1.7159715 x4

y x1 x2 var10 x3 (High = 1) x4 (Medium = 1) 64 47 72 H 1 0 65 38 63 L 0 0 73 44 78 M 0 1 43 37 52 H 1 0 42 26 43 M 0 1 45 24 47 L 0 0 36 25 36 L 0 0 21 19 17 M 0 1 6 7 15 H 1 0

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