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