Homework 23 - Graded Homework 23 You have submitted this...

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Graded Homework 23 You have submitted this Homework 2 times (including this time). You may submit this Homework a total of 40 times and receive full credit. This homework covers qualitative (or indicator, or dummy) variables, material that can be found in your course packet on pages 114-115. Question #1 Suppose you want to develop a model to predict pizza consumption for students at the University of Illinois. You have collected data from 100 different U of I students on the amount of money they spent on pizza (measured in dollars) in one semester, their income (measured in dollars), whether they live in a dorm or an apartment (dorm=1, not dorm=0), and how much time they spend in the library studying (measured in hours). Suppose you have run the appropriate regression with the correct variable as a dummy variable, and the coefficient on the variable DORM is estimated to be 3.7564. What is the correct interpretation of this coefficient? ( Hint: there are 2 right answers ) Holding constant the effects of income and library study time, students living in an apartment spend $3.7564 less on pizza in a semester than students living in dorms. Holding constant the effects of income and library study time, students living in a dorm spend $3.7564 more on pizza in a semester than students not living in dorms. Holding constant the effects of income and library study time, students living in a dorm spend $3.7564 less on pizza in a semester than students not living in dorms. Students living in dorms spend $3.7564 less on pizza than students not living in dorms. Holding constant the effect of library study time, students living in a dorm
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This note was uploaded on 04/07/2008 for the course ECON 203 taught by Professor Petry during the Spring '08 term at University of Illinois at Urbana–Champaign.

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Homework 23 - Graded Homework 23 You have submitted this...

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