3. Suppose that we have a factor that records the three possible answers of the respondents in a survey, Yes/No/Undecided. Wewould like to use this factor as one predictor to explain a response y . Consider the method of coding the factor as two indicatorvariables:21=1 if answer =0 ifanswer-1 if answer = Undecided=Yes,No,22=0if1if-1 ifYes,answer =answer = No,answer = Undecidedand use a model of the formYi = Bo + B₁z1i + B₂ Z2i + EiFor a model of this form, Calculate the E(y) for the respondents who answer Yes, No and Undecided respectively?

This question seeks to explore the expected value of a response y, given a factor that records the…

3. Suppose that we have a factor that records the three possible answers of the respondents in a survey, Yes/No/Undecided. We would like to use this factor as one predictor to explain a response y. Consider the method of coding the factor as two indicator variables: 1 = answer= Yes, 1 if 0 if answer= No, -1 if answer = Undecided 22 = 0 if answer = Yes, 1 if answer= No, -1 if answer Undecided and use a model of the form Ji Bo + B1z1i + B2 Z2i + Ei For a model of this form, Calculate the E(y) for the respondents who answer Yes, No and Undecided respectively?