Consider the Regression Equation = B₀ + B₁xd with B₁

question 42

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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Definitions:

Alternative Hypothesis

The hypothesis concluded to be true if the null hypothesis is rejected.

Population Parameter

A numerical value used as a summary measure for a population (e.g., the population mean, m, the population variance, s2, and the population standard deviation, s).

Type I Error

The error of rejecting H0 when it is true.

Type II Error

The error of accepting H0 when it is false.