Which of the Following Statements Are True?
A) the True $y = \beta _ { 0 } + \beta _ { 1 } x$

question 106

Multiple Choice

Which of the following statements are true?

• A) The true regression line \(y = \beta _ { 0 } + \beta _ { 1 } x\) Is the line of mean values.
• B) The height of the true regression line \(y = \beta _ { 0 } + \beta _ { 1 } x\) Above any particular x value is the expected value of Y for that value of x.
• C) The slope \(\beta _ { 1 }\) Of the true regression line \(y = \beta _ { 0 } + \beta _ { 1 } x\) Is interpreted as the expected change in Y associated with a 1-unit increase in the value of x.
• D) The equation States that the amount of variability in the distribution of Y values is the same at each different value of x (homogeneity of variance).
• E) All of the above statements are true.

---

Definitions:

Consumer Surplus

The discrepancy between the total price consumers are prepared and can afford to pay for a product or service compared to the actual amount they end up paying.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, reflecting gains from trade.

Government Revenue

The money received by government from taxes and non-tax sources to finance government expenditures.

Market Size

The total volume or value of all sales within a given market over a specific period of time.