Please answer this as quickly as possible!! thanks!! :D Using 50 observatoins, t
ID: 3360468 • Letter: P
Question
Please answer this as quickly as possible!! thanks!! :D
Using 50 observatoins, the following regression output is obtained from estimating...
Using 50 observations, the following regression output is obtained from estimating y = 0 + 12d1 + 3d2 + . Standard t Stat -2.72 2.80 -0.80 4.60 p-value 0.0092 0.0074 0.4278 0.0000 Coefficients Error Intercept -0.68 3.08 -12.48 5.75 0.25 1.10 15.60 1.25 d2 Compute y-hat for x-255, d,-1, and d2 = 0; then compute y-hat for x = 255, d,-0, and d2-1 (Round intermediate calculations to 4 decimal places and final answers to 2 decimal places.) a. at d1 1 and d20 d1 = 0 and d2-1 b-1. Interpret d When d1 1, y-hat is 5.75 units greater than when d1 0, holding everything else constant When d1 1, y-hat is 12.48 units greater than when d1 0, holding everything else constant. When d1 1, y-hat is 12.48 units less than when d1 0, holding everything else constant. When d1-1, y-hat is 5.75 units less than when dy0, holding everything else constant. b-2. Are both dummy variables individually significant at the 5% level? O No, only the dummy variable d2 is significant at 5% level O 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 d1 is significant at 5% levelExplanation / Answer
x=255 d1=1 d2=0
y-hat=-0.68+3.08*255-12.48*1+5.75*0=772.24
y-hat=772.24
x=255 d1=0 d2=1
yhat=-0.68+3.08*255-12.48*0+5.75=790.47
yhat=790.47
b-1.
ans is C When d1=1, yhat is 12.48 units less than when d1=0, holding everything else constant.
Explanation: Coefficient denotes units change in y per one unit change in the independent variable.
Here it has negative sign hence if d1 is one y-hat will be 12.48 units less.
b-2.
ans is A No, only dummry variable d2 is significant at 5% level
Explanation: For any variable to be statistically significant, its p-value should be less than level of significance.
Here level of significance is 5%=0.05 and variable d2 has p value 0.000 which is less than 0.05 hence it is significant. d1 has p value 0.4278 which is greater then 0.05 hence d1 is not statistically significant.