What would you expect y to be for observations


Problem: You estimate a linear model where Y is the dependent variable and X is the independent variable. X is a binary variable that takes on values of 0 and 1. The estimated coefficient for X (B) is 1 and the intercept (a) is equal to -3. Based on these results, what would you expect Y to be for observations for which X=0?

  • 1
  • -3
  • 0
  • Impossible to tell

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