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

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Mathematically, the model in one qualitative independent variable with 4 levels can be written as E(y)=β0+β1x1+β2x2+β3x3..

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)=β0+β1x1+β2x2+β3x3

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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