A Multiple Regression Model Has the Form $\tilde { y } = 8 + 3 x _ { 1 } + 5 x _ { 2 } - 4 x _ { 3 }$

question 113

Multiple Choice

A multiple regression model has the form $\tilde { y } = 8 + 3 x _ { 1 } + 5 x _ { 2 } - 4 x _ { 3 }$ .As x₃ increases by one unit,with x₁ and x₂ held constant,the y on average is expected to:

• A) increase by 1 unit.
• B) increase by 12 units.
• C) decrease by 4 units.
• D) decrease by 16 units.

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Definitions:

Interest Rate

The proportion, typically expressed as a percentage, at which interest is charged by lenders on loans or paid by banks on deposits.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.