Question:

Your task is to combine 4.1 and 4.2 into a single multiple regression model using dummy variables. To put the data in an Excel-friendly format, you will first need to create dummy variables for each of the different processing centers.

1. Estimate a multiple regression model, again using cost as the dependent variable, however for your independent variables you will want to use orders AND your set of dummy variables (see technical note below).
2. Comment on the results from (a) in light of your results in 4.1 and 4.2. Does the coefficient on orders here match your results from 4.2? Do the coefficients on your dummy variables, and differences between the coefficients on your dummy variables, match up with your results from 4.1?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document