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STAT 20: Introduction to Probability and Statistics

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What will be the sign of the coefficient for `bill_length_mm`

?

```
Call:
lm(formula = bill_depth_mm ~ bill_length_mm, data = penguins)
Coefficients:
(Intercept) bill_length_mm
20.78665 -0.08233
```

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What will be the sign of the coefficient for `bill_length_mm`

? How many coefficients will be in this linear model?

```
Call:
lm(formula = bill_depth_mm ~ bill_length_mm + species, data = penguins)
Coefficients:
(Intercept) bill_length_mm speciesChinstrap speciesGentoo
10.5653 0.2004 -1.9331 -5.1033
```

**Dummy Variable**

A variable that is 1 if an observation takes a particular level of a categorical variable and 0 otherwise. A categorical variable with \(k\) levels can be encoded using \(k - 1\) dummy variables.

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```
Call:
lm(formula = bill_depth_mm ~ bill_length_mm + species, data = penguins)
Coefficients:
(Intercept) bill_length_mm speciesChinstrap speciesGentoo
10.5653 0.2004 -1.9331 -5.1033
```

Which is the correct interpretation of the coefficient in front of Gentoo?