I the Values of B1, B2 and B3 in a Multiple

question 35

Multiple Choice

i. The values of b1, b2 and b3 in a multiple regression equation are called the net regression coefficients. They indicate the change in the predicted value for a unit change in one X when the other X variables are held constant.
ii. Multiple regression analysis examines the relationship of several dependent variables on the independent variable.
Iii) A multiple regression equation defines the relationship between the dependent variable and the independent variables in the form of an equation.

• A) (i), (ii) and (iii) are all correct statements.
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false.

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Definitions:

Law Of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if all other variables remain at a constant.

Marginal Output

The additional quantity of a product that is produced from using one more unit of an input, keeping other inputs constant.

Diminishing Returns

A principle stating that if one factor of production is increased while other factors are held constant, the incremental output or benefit gained will eventually decrease.

40-Acre Farm

A piece of farmland covering 40 acres, often used historically in the context of post-Civil War land redistribution promises in the United States.