In the Simple Linear Regression Model $Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i }$

question 46

Multiple Choice

In the simple linear regression model $Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i }$

• A) the intercept is typically small and unimportant.
• B) \(\beta _ { 0 } + \beta _ { 1 } X _ { i }\) represents the population regression function.
• C) the absolute value of the slope is typically between 0 and 1 .
• D) \(\beta _ { 0 } + \beta _ { 1 } X _ { i }\) represents the sample regression function.

---

Definitions:

Hawthorne Plant

A reference to the site of an influential set of studies in the early 20th century in the Hawthorne Works, a factory of the Western Electric Company, which highlighted the impact of work conditions on employee productivity.

Human Relations School

An approach to management and organizational theory that emphasizes the importance of human needs in the workplace and the key role of social interactions in employee satisfaction and productivity.

Primary Labor Market

Is composed mainly of highly skilled or well-educated white males. They are employed in large corporations that enjoy high levels of capital investment. In the primary labor market, employment is secure, earnings are high, and fringe benefits are generous.