Consider the Regression Equation = B₀ + B₁xd with B₁

question 9

Multiple Choice

Consider the regression equation = b₀ + b₁xd with b₁ > 0 and a dummy variable d. If d changes from 0 to 1, which of the following is true?

• A) The intercept increases by b₀ + b₁.
• B) The intercept increases by b₁.
• C) The slope increases by b₀ + b₁.
• D) The slope increases by b₁.

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