Question 1
Consider the model
where
x1 is a quantitative variable and
x2 and
x3 are dummy variables describing a qualitative variable at three levels using the coding scheme
The resulting least squares prediction equation is
What is the equation of the response curve for
E(
y) when
x2 = 0 and
x3 = 0?
◦
= 8.8 - 1.1
x1 + 3.2
x12◦
= 8.8 - 1.3
x1 + 3.2
x12◦
= 8.8 - 1.6
x2 - 4.4
x3◦
= 8.8 - .22
x1 + 3.15
x12Question 2
It is desired to build a regression model to predict y = the sales price of a single family home, based on the x
1 = size of the house and x
2 = the neighborhood the home is located in. The goal is to compare the prices of homes that are located in two different neighborhoods. A complete 2nd-order model is proposed. Which regression model proposes the complete 2nd-order model?
◦ E(y) = β
0 + β
1x
1 + β
2x
12 + β
3x
2 + β
4x
1x
2 + β
3x
12x
2◦ E(y) = β
0 + β
1x
1 + β
2x
2 + β
3x
1x
2◦ E(y) = β
0 + β
1x
1 + β
2x
12 + β
3x
2 + β
4x
22◦ E(y) = β
0 + β
1x
1 + β
2x
2
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