Using 50 observations the following regression output is obt

Using 50 observations, the following regression output is obtained from estimating y Bo B1 B2d1 B3d2 E. Standard Coefficients Error t Stat p-value Intercept -0.78 0.40 1.95 0.0573 2.60 0.0125 0.75 0.4571 3.90 1.50 2.60 16.80 5.10 1.50 3.40 0.0014 a. Compute y-hat for x 246, d1 1, and d2 0; then compute y hat for x 246, d130, and d2 1 (Do not round intermediate calculations. Round your answers to 2 decimal places. d1 1 and d2 d1 0 and d2 b-1. Interpret d1. O When d 1, hat is 12.6 units less when d 0, holding everything else constant. O When d1 1, y hat is 12.6 units greater than when d1 0, holding everything else constant. O When d 1, hat is 5.1 units less than when d 0, holding everything else constant. O When d 1, y hat is 5.1 units greater than when d1 0, holding everything else constant. b-2. Interpret d2. O When d2 1 hat is 12.6 units less than when d2 0, holding everything else constant. O When d2 1, hat is 12.6 units greater than when d2 *0, holding everything else constant. O When d2 1 hat is 5.1 units less than when d2 0,holding everything else constant. G When d2 1, y hat is 5.1 units greater than when d2 *0, holding everything else constant b-3. Are both dummy variables individually significant at the 5% level? o No, only the dummy variable d2 is significant at 5% lev O Yes, both dummy variables are individually significant at the 5% level. O No, only the dummy variable d1 is significant at 5% level. O No, both dummy variables are not individually significant at 5% level.

Solution

a.

Using

y = -0.78 + 3.90x - 12.60d1 + 5.10d2

Then for x = 246, d1 = 1, d2 = 0,

y-hat = 946.02 [ANSWER]

For x = 246, d1 = 0, d2 = 1,

y-hat = 963.72 [ANSWER]

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b-1. [OPTION A]

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b-2. [OPTION D]

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b-3. [OPTION A]