Consider the Following Regression Model: Humidity = β₀ + β₁Temperature

question 42

Multiple Choice

Consider the following regression model: Humidity = β₀ + β₁Temperature + β₂Spring + β₃Summer + β₄Fall + β₅Rain + ε, where the dummy variables Spring, Summer, and Fall represent the qualitative variable Season (spring, summer, fall, winter) , and the dummy variable Rain is defined as Rain = 1 if rainy day, Rain = 0 otherwise.
Assuming the same temperature and precipitation condition, what is the difference between the predicted humidity for summer and fall days?

• A) b₀ + b₃ - b₄
• B) _b3 - b₄
• C) _b3 + b₄
• D) _b0 + b₄ - b₃

---

Definitions:

Cost-Benefit Analysis

A systematic process of comparing the costs and benefits of a decision, project, or action to determine its feasibility or profitability.

Recycling Intervention

Programs or actions designed to increase the rate of recycling among communities or organizations by changing attitudes or behaviors.

Resource-Destructive Harvesting

Practices that excessively exploit natural resources, leading to their rapid depletion and ecological damage.

Community-Oriented Harvesting

Refers to a practice or initiative aimed at gathering food or other resources in a way that benefits and involves the local community, promoting sustainability and cooperation.