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Write a model relating E(y) to one qualitative independent variable that is at four levels. Define all the terms in your model.

Short Answer

Expert verified

Mathematically, the model in one qualitative independent variable with 4 levels can be written as E(y)=0+1x1+2x2+3x3..

Step by step solution

01

A qualitative model

A model relating E(y) to one qualitative independent variable with 4 levels can be written by introducing (k-1) variables in the model to define the 4 different levels where 3 variables define 3 levels when the value of a particular variable is 1 and one level is defined as base level when all variables are 0.

02

4 levels

Mathematically, the model can be written asE(y)=0+1x1+2x2+3x3

Where x1 = 1, if level 1 is present; otherwise 0

X2 = 1, if level 2 is present; otherwise 0

X3 = 1, if level 3 is present; otherwise 0

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Most popular questions from this chapter

Suppose the mean value E(y) of a response y is related to the quantitative independent variables x1and x2

E(y)=2+x1-3x2-x1x2

a) Identify and interpret the slope forx2

b) Plot the linear relationship between E(y) andx2for role="math" localid="1649796003444" x1=0,1,2, whererole="math" localid="1649796025582" 1x23

c) How would you interpret the estimated slopes?

d) Use the lines you plotted in part b to determine the changes in E(y) for eachrole="math" localid="1649796051071" x1=0,1,2.

e) Use your graph from part b to determine how much E(y) changes whenrole="math" localid="1649796075921" 3x15androle="math" localid="1649796084395" 1x23.

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d. If the theory in part c is supported, what is the expected sign of2in the model, part b?

e. The researchers reported^2=0.32with an associated p-value of less than 0.05. Use this information to test the researchers鈥 theory at=0.05

Catalytic converters in cars. A quadratic model was applied to motor vehicle toxic emissions data collected in Mexico City (Environmental Science & Engineering, Sept. 1, 2000). The following equation was used to predict the percentage (y) of motor vehicles without catalytic converters in the Mexico City fleet for a given year (x): ^2

a. Explain why the value^0=325790has no practical interpretation.

b. Explain why the value^1=-321.67should not be Interpreted as a slope.

c. Examine the value of^2to determine the nature of the curvature (upward or downward) in the sample data.

d. The researchers used the model to estimate 鈥渢hat just after the year 2021 the fleet of cars with catalytic converters will completely disappear.鈥 Comment on the danger of using the model to predict y in the year 2021. (Note: The model was fit to data collected between 1984 and 1999.)

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a) Write the equation of an interaction model for E(y) as a function of x1 and x2 .

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c) In terms of the in the model, part a, what is the change in revenue (y) for every 1-tweet increase in the tweet rate (x1 ) , holding PN-ratio (x2)constant at a value of 5.0?

d) In terms of the in the model, part a, what is the change in revenue (y) for every 1-unit increase in the PN-ratio (x2) , holding tweet rate (x1 )constant at a value of 100?

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(a) Is the overall model statistically useful for predicting y? Test using a=0.05

(b )Conduct a test for interaction at a= 0.05.

(c) Use the estimates to sketch the estimated relationship between repatronage intentions (y) and satisfaction when retailer interest is x2=1 (a low value).

(d)Repeat part c when retailer interest is x2= 7(a high value).

(e) Sketch the two lines, parts c and d, on the same graph to illustrate the nature of the interaction.

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