In a multiple regression analysis, the regression equation is obtained. The variable is quantitative variable, and the variable is a dummy variable with values 0 and 1. Given this information, we can interpret the slope coefficient (-3) on variable as follows: Holding constant, if the value of is changed from 0 to 1, the average value of y will decrease by 3 units.

Question

In a multiple regression analysis, the regression equation  is obtained. The  variable is quantitative variable, and the  variable is a dummy variable with values 0 and 1. Given this information, we can interpret the slope coefficient (-3) on variable  as follows: Holding  constant, if the value of  is changed from 0 to 1, the average value of y will decrease by 3 units.

Quizplus · Accepted Answer

The slope coefficient on the dummy variable indicates the average difference in the response variable between the two groups defined by the dummy variable, while holding all other variables in the model constant. In this case, if the value of the dummy variable changes from 0 to 1, the average value of y will decrease by 3 units, while holding the quantitative variable constant.

In a Multiple Regression Analysis, the Regression Equation Is