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Incorporate interaction between age and type of car

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Reference no: EM131821413

Consider the dependent variable y = fuel efficiency of a car (mpg).

a. Suppose that you want to incorporate type of car, with four categories (subcompact, compact, midsize, and large), into a regression model that also includes x1 = age of car and x2 = engine size. Define the necessary indicator variables, and write out the complete model equation.

b. Suppose that you want to incorporate interaction between age and type of car. What additional predictors would be needed to accomplish this?

Reference no: EM131821413

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