Exercise

# Categorical Predictors II

Enter `summary(lm(liking ~ smile + money + talk))`

into your console to see the output from your regression analysis that includes how much giving people money, smiling and saying neutral, rude or polite statments predicts how much people like you.

You included the neutral/rude/polite statments in your model as the values 1, 2, and 3. Behind the scenes, R compares the regression slope for rude statements, to the regression slope for neutral statements (`talk2`

), and compared the regression slope for polite statements to the regression slope for neutral statements (`talk3`

). The output shows coefficient estimates `talk2`

and `talk3`

.

Let's assume that all of the assumptions for performing a regression analysis were met. Which of the following statements is true?