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Consider the Following Regression Equation: = 356 + 180x1

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Consider the following regression equation: Consider the following regression equation:   = 356 + 180x<sub>1</sub> - 2.5x<sub>2</sub>.The x<sub>1</sub> variable is a quantitative variable and the x<sub>2</sub> variable is a dummy with values 1 and 0.Given this,we can interpret the slope coefficient on variable x<sub>2 </sub>as follows: Holding x<sub>1</sub> constant,if the value of x<sub>2 </sub>is changed from 0 to 1,the average value of y will decrease by 2.5 units. = 356 + 180x1 - 2.5x2.The x1 variable is a quantitative variable and the x2 variable is a dummy with values 1 and 0.Given this,we can interpret the slope coefficient on variable x2 as follows: Holding x1 constant,if the value of x2 is changed from 0 to 1,the average value of y will decrease by 2.5 units.


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