Consider the Model $y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \varepsilon$

question 16

Multiple Choice

Consider the model $y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \varepsilon$ where $x _ { 1 }$ is a quantitative variable and $x _ { 2 }$ and $x _ { 3 }$ are dummy variables describing a qualitative variable at three levels using the coding scheme
$x _ { 2 } = \left\{ \begin{array} { l l } 1 & \text { if level } 2 \\ 0 & \text { otherwise } \end{array} \quad x _ { 3 } = \left\{ \begin{array} { l l } 1 & \text { if level } 3 \\ 0 & \text { otherwise } \end{array} \right. \right.$
The resulting least squares prediction equation is $\hat { y } = 16.3 + 2.3 x _ { 1 } + 3.5 x _ { 2 } + 18 x _ { 3 }$ . What is the response line (equation) for $E ( y )$ when $x _ { 2 } = 0$ and $x _ { 3 } = 1$ ?

• A) \(\hat { y } = 16.3 + 4.1 x _ { 1 }\)
• B) \(\hat { y } = 18.6 + 2.3 x _ { 1 }\)
• C) \(\hat { y } = 16.3 + 2.3 x _ { 1 }\)
• D) \(\hat { y } = 18.1 + 2.3 x _ { 1 }\)

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