Answer the following questions based on Section 4.3.1: Qualitative predictors with two levels.

Consider the following data:

X 0.8 0.6 0.8 0.2 0.5 1.0 0.3 0.1 0.2 0.5
D 0 0 1 0 0 1 1 0 1 1
Y 1.1 0.7 2.9 0.1 0.9 4.0 1.8 0.3 1.4 2.8
D is an indicator variable representing a qualitative predictor with two levels (e.g., D = 0 represents “low” and D = 1 represents “high”). Use statistical software to fit a multiple linear regression model with response variable, Y, and predictor variables, D, X, and DX (interaction variable). Use the fitted model to answer the following questions.

1. 

Which p-value indicates that the linear association between Y and X differs between D = 0 and D = 1?

2. 

Which of the following best describes the fitted model?

3. 

Which expression represents the predicted (or fitted) values of Y with respect to X when D = 0?

4. 

Which expression represents the predicted (or fitted) values of Y with respect to X when D = 1?

5. 

Define D* = 1 – D (i.e., D* = 0 represents “high” and D* = 1 represents “low”). Which expression represents the estimated regression equation for a simple linear regression model with response variable, Y, and predictor variables, D*, X, and D*X?

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