If ₁ = Cov(x₁,x₂) / Var(x₁) Where X₁ and X₂

question 4

Multiple Choice

If ₁ = Cov(x₁,x₂) / Var(x₁) where x₁ and x₂ are two independent variables in a regression equation, which of the following statements is true?

• A)If x₂ has a positive partial effect on the dependent variable, and ₁ > 0, then the inconsistency in the simple regression slope estimator associated with x₁ is negative.
• B)If x₂ has a positive partial effect on the dependent variable, and ₁ > 0, then the inconsistency in the simple regression slope estimator associated with x₁ is positive.
• C)If x₁ has a positive partial effect on the dependent variable, and ₁ > 0, then the inconsistency in the simple regression slope estimator associated with x₁ is negative.
• D)If x₁ has a positive partial effect on the dependent variable, and ₁ > 0, then the inconsistency in the simple regression slope estimator associated with x₁ is positive.

---

Definitions:

Commercial Impracticability

A defense in contract law allowing parties to escape liability for nonperformance when unforeseen events make fulfillment of the contract extraordinarily difficult or unfair.

Breach of Contract

Occurs when one party fails to fulfill its obligations under the agreement, giving the aggrieved party the right to seek remedies.

Conform to Contract

The act of meeting or complying with the terms and conditions outlined in a contractual agreement.

Good Faith

Acting with honesty and integrity in dealings, without intending to deceive or commit fraud.