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For a multiple regression model predicting life expectancy, smokers and non-smokers are considered as two distinct categories. The non-smokers were coded as “1” in a dummy variable (x_5x5). The regression equation is :
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To predict the average speeds of vehicles on the interstates, the DOT plans to use a multiple regression model. They feel that the vehicle speed is determined by a variety of factors including the type of the vehicle (coupe, sedan, hatchback, etc.), vehicle age, engine size, road conditions, weather, driver age, time of the day (morning, afternoon, etc).
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