Multiple Choice
THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You are interested in examining the factors that determine the average length of stay in a hospital across states.You collect data on the following variables:
Y = statewide average hospital stay
X1 = median state income
X2 = 1 if the state is in the Northeast,0 otherwise
X3 = 1 if the state is in the South,0 otherwise
X4 = 1 if the state is in the Midwest,0 otherwise
X5 = 1 if the state is in the West,0 otherwise
-You run the following regression: Y = β0 + β1X1 + β2X2 + β3X3 + β4X4.What effect does being a state in the West have on the average length of hospital stay?
A) β5
B) β0β5
C) β0
D) Cannot determine the answer with this specification
Correct Answer:

Verified
Correct Answer:
Verified
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