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Exhibit 17

Question 50

Multiple Choice

Exhibit 17.3.Consider the 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.
Refer to Exhibit 17.3.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

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