Author Question: Write a model specification and define the variables for a multiple regression model to predict the ... (Read 90 times)

captainjonesify · **on:** Jun 24, 2018

Write a model specification and define the variables for a multiple regression model to predict the medical costs as a function of employment type indicated as: professional, technical, sales, and managerial, and a function of gender indicated as

male and female. Be sure to include interactive terms.

Question 2

A histogram is an example of a numerical measure.

Indicate whether the statement is true or false

Liddy · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

The model specification for the given data can be represented as:
Y = medical costs
X1 = 1 if professional, 0 otherwise
X2 = 1 if technical, 0 otherwise
X3 = 1 if sales, 0 otherwise
X4 = 1 if managerial, 0 otherwise
X5 = 1 if female, 0 otherwise

Y = 0 + 1X1 + 2X2 + 3X3 + 4X4 + 5X5 + 6(X1X5 ) + 7(X2X5 ) + 8(X3X5 ) + 9(X4X5 )

Answer to Question 2

FALSE