Answer
$y_i=β_0+β_1x_{1_i}+β_2x_{2_i}+β_3x_{3_i}+ε_i$
The variable $x_1$, city or highway driving, is an indicator variable.
Work Step by Step
The variable $x_1$ will assume the values 0 or 1.
Statistics: Informed Decisions Using Data (4th Edition)
by Sullivan III, Michael
Published by
Pearson
ISBN 10:
0321757270
ISBN 13:
978-0-32175-727-2
Chapter 14 - Section 14.3 - Assess Your Understanding - Vocabulary and Skill Building - Page 721: 16a
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