In a Multiple Regression Model $y ^ { \prime } = - 14 + 2 x _ { 2 } + 11 x _ { 2 } + 7 x _ { 3 } + 5 x _ { 4 }$

question 33

Multiple Choice

In a multiple regression model $y ^ { \prime } = - 14 + 2 x _ { 2 } + 11 x _ { 2 } + 7 x _ { 3 } + 5 x _ { 4 }$ if the value of $\mathrm { X } _ { 2 }$ increases by 6 and the value of x3 decreases by 3, then the predicted value for y will

• A) increase by 87
• B) decrease by 87
• C) increase by 45
• D) decrease by 45

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Definitions:

Human Development Index

An index measuring key dimensions of human development: life expectancy, education, and per capita income.

Gini Coefficient

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Purchasing Power Parity

Purchasing Power Parity is an economic theory that compares different countries' currencies through a "basket of goods" approach, suggesting that exchange rates should adjust so that identical goods cost the same in different countries.

Market-based Economy

An economic system where decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.