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Homework Help: Question about multiple regression analysis

  1. Nov 18, 2012 #1
    1. The problem statement, all variables and given/known data

    My question is q.3 in the attachment. I don't really understand the scenario of the question.

    3. The attempt at a solution

    For (a), if X = 1, will the model become: y = (b_1)(E_1) + epsilon? So (b_i)'s are the slopes of the models? But what is the assumption of the model?

    And for the rest of the question, I'm just looking for someone to explain to me a little bit more.

    Attached Files:

  2. jcsd
  3. Nov 18, 2012 #2

    Ray Vickson

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    Homework Helper

    The assumption of the model is that the errors are independent of the categories. For example, suppose there are two categories, called 'male' and 'female' and that there is some measured numerical aspect Y of a person. The model is saying that Ymale = mmale + ε and Yfemale = mfemale + ε, with possibly different means m but identical "noise" ε.

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