An Estimated Multiple Regression Model Has the Form $\hat { y } = \hat { \beta } _ { 0 } + \hat { \beta } _ { 1 } x _ { 1 } + \hat { \beta } _ { 2 } x _ { 2 } .$

question 84

Multiple Choice

An estimated multiple regression model has the form $\hat { y } = \hat { \beta } _ { 0 } + \hat { \beta } _ { 1 } x _ { 1 } + \hat { \beta } _ { 2 } x _ { 2 } .$ Which of the following best describes $\hat { \beta } _ { 2 }$ ?

• A)We estimate for each one unit increase in x2, that y will increase by \(\hat { \beta } _ { 2 }\) units, on average.
• B)Whilst holding x1 constant, we estimate for each one unit increase in x2, that y will increase by \(\hat { \beta } _ { 2 }\) units, on average.
• C)Whilst holding x2 constant, we estimate for each one unit increase in x1, that y will increase by \(\hat { \beta } _ { 2 }\) units, on average
• D)Whilst holding x1 constant, we estimate for each one unit increase in x2, that y will increase by \(\hat { \beta } _ { 2 }\) units, on average .

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Definitions:

Technological Advance

The introduction of new technologies or the improvement of existing ones, enhancing productivity and efficiency.

Economic Expansion

A phase of the business cycle where there is an increase in economic activity, marked by rising GDP, employment, and income levels.

Loanable Funds

The total amount of funds available for borrowing in the financial market, influenced by savings and investments.

Investment Spending

Expenditures made by businesses or individuals on capital goods, which are intended to create future benefits such as increased production or revenue.