Consider the following regression model, Humidity = β0 + β1 Temperature + β2 Spring + β3Summer + β4 Fall + β5 Rain + ε,
Where the dummy variables Spring,Summer,and Fall represent the qualitative variable Season (spring,summer,fall,winter) ,and the dummy variable Rain is defined as Rain = 1 if rainy day,Rain = 0 otherwise.Assuming the same temperature and precipitation condition,what is the difference between the predicted humidity for summer and winter days?
A) b0 + b1 + b5
B) b0 + b3 + b5
C) b3
D) b0 + b5
Correct Answer:
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