In a Multiple Regression Problem Involving Two Independent Variables X₁

question 29

Multiple Choice

In a multiple regression problem involving two independent variables X₁ and X₂,what does it mean if the value of b₁ is 3.2?

• A)The relationship between X₁ and Y is significant.
• B)The estimated value of Y increases by an average of 3.2 units for each unit increase of X₁,holding X₂ constant.
• C)The estimated value of Y increases approximately by 3.2 units for each unit increase of X₂,holding X₁ constant.
• D)The estimated average value of Y is 3.2 units when X₁ = 0.

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Definitions:

Actual Results

The real values or outcomes achieved after the completion of a particular period, project, or activity, typically compared against previously set targets or budgets.

Variable Overhead Efficiency Variance

This is the difference between the actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate per hour.

Supplies Cost

The cost associated with materials and items that are consumed or used in the process of producing goods or providing services.

Machine-Hours

A measure of production output or capacity based on the number of hours a machine operates.