Multiple choice: Interpret indicator In the model y = a + 11 + 22, suppose that 1 is an indicator variable for smoking, equalling 1 for smokers and 0 for nonsmokers.
a. We set 1 = 0 if we want a predicted mean without knowing if the person is a smoker or not.
b. The slope effect of 2 is b1 for smokers and 2 for nonsmokers.
c. b1 is the difference between the population mean of y for smokers and nonsmokers.
d. b1 is the difference between the population mean of y for smokers and nonsmokers, for all those subjects having 2 fixed, such as 2 = 10.
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