Question

Consider more recent data that includes three genres: comedy, action and drama. Consider these OLS results: gross-hat = -11.0898 + 1.6584*budget - 0.6747*budget*comedy - 0.8419*budget*drama + 33.3128*comedy + 10.5251*drama.
If you had estimated gross-hat = b0 + b1*budget + b2*budget*comedy + b3*budget*action + b4*comedy + b5*action, what would the value of b2 be? (Record your answer accurate to at least the nearest second decimal place with standard rounding.)

Answer 1

the ordinary least square regression is

gross-hat = -11.0898 + 1.6584*budget - 0.6747*budget*comedy - 0.8419*budget*drama + 33.3128*comedy + 10.5251*drama.

when we compare this mdel with

gross-hat = b0 + b1*budget + b2*budget*comedy + b3*budget*action + b4*comedy + b5*action,

the value of b2 is 1.6584 = 1.66( upto two decimal)