Exercise

# Interpreting parallel slopes coefficients

For linear regression with a single numeric explanatory variable, there is an intercept coefficient and a slope coefficient. For linear regression with a single categorical explanatory variable, there is an intercept coefficient for each category.

In the "parallel slopes" case, where you have a numeric and a categorical explanatory variable, what do the coefficients mean?

`taiwan_real_estate`

and `mdl_price_vs_both`

are available.

Instructions 1/2

1

2

## Question

Look at the coefficients of `mdl_price_vs_both`

. What is the meaning of the `n_convenience`

coefficient?

### Possible answers

The mean number of nearby convenience stores is

`0.79`

.For a house with zero nearby convenience stores, the expected house price is

`0.79`

TWD per square meter.For each additional nearby convenience store, the expected house price, in TWD per square meter, increases by

`0.79`

.For each additional

`0.79`

nearby conveniences stores, the expected house price increases by 1 TWD per square meter.