Consider a regression study involving a dependent variable y, a quantitative independentvariable x1, and a categorical independent variable with two…
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Consider a regression study involving a dependent variable y, a quantitative independentvariable x1, and a categorical independent variable with two possible levels (level 1, level 2).
a) How many dummy variables are required to represent the categorical variable?
b) Write a multiple regression equation relating x1 and the categorical variable to y.
c) Interpret the parameters in your regression equation
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