Consider the Regression Equation Y = 5 + 16X₁

question 72

Multiple Choice

Consider the regression equation Y = 5 + 16X₁ + 38X₂ relating annual expenditures on a particular product Y to X₁ and X₂, where Which of the following is FALSE? The equation suggests

• A) An upper class person could be expected on the average to spend $38 per year more than a lower class person on the product.
• B) A middle class person could be expected on the average to spend $16 more per year on the product than a lower class person.
• C) A lower class person could be expected on the average to spend $5 per year on the product.
• D) An upper class person could be expected on the average to spend $22 more per year on the product than a middle class person.
• E) An upper class person could be expected on the average to spend $38 per year on the product.

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Definitions:

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