Moderate# Interpreting the Estimated Constant Parameter

EMETRC-ZRGD16

Consider the estimated regression model, $P = 5.45 + 1.89 \text{Holiday}$, where $P$ represents the price of a particular toy in stores across the United States and Holiday is a binary (dummy) variable that equals 1 during major holidays (e.g., Holiday=1 at Christmas and Holiday=0 otherwise).

Which statement is **TRUE**?