Multiple Choice
Consider the following regression model: Humidity = β0 + β1Temperature + β2Spring + β3Summer + β4Fall + β5Rain + ε, where the dummy variables Spring, Summer, and Fall represent the qualitative variable Season (spring, summer, fall, winter) , and the dummy variable Rain is defined as Rain = 1 if rainy day, Rain = 0 otherwise.
Assuming the same temperature and precipitation condition, what is the difference between the predicted humidity for summer and fall days?
A) b0 + b3 - b4
B) b3 - b4
C) b3 + b4
D) b0 + b4 - b3
Correct Answer:

Verified
Correct Answer:
Verified
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