Interpreting the Intercept in a Sample Regression Function Is

question 43

Multiple Choice

Interpreting the intercept in a sample regression function is

• A)not reasonable because you never observe values of the explanatory variables around the origin.
• B)reasonable because under certain conditions the estimator is BLUE.
• C)reasonable if your sample contains values of Xi around the origin.
• D)not reasonable because economists are interested in the effect of a change in X on the change in Y.

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