Silver Prices an Economist Is in the Process of Developing a Developing

question 33

Essay

Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x₁)and the interest rate (x₂).She proposes the first-order model with interaction: y = β₀ + β₁x₁ + β₂x₂ + β₃x₁x₃ + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x₁ + 14.7x₂− 1.36x₁x₂ S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE ​ ​
-{Silver Prices Narrative} Interpret the coefficient b₁.

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Definitions:

Influencing

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Manipulating

Influencing or controlling someone or something to one's advantage, often in an unfair or dishonest way.

Motivating

The process of providing reasons, incentives, or encouragement to act or behave in a specific manner.

Indirect Strategy

Indirect strategy in communication involves presenting the supporting reasons before the main message or request, often used to prepare the recipient and reduce resistance.