THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 197

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used lnY = β₀ + β₁lnX₁ + β₂lnX₂ + β₃lnX₃ + lnε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X₁ is the number of loans,X₂ is the interest rate,and X₃ is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained ln
= 0.67 + 1.2 ln x₁ - 1.45 ln x₂ + 1.07 ln x₃.
-How would the officer interpret the coefficient on x₃?

• A)As the total loan amount increases,the amount of advertising increases at an increasing rate.
• B)As the amount of advertising increases,the total loan amount increases at an increasing rate.
• C)As the amount of advertising increases,the total loan amount increases at a decreasing rate.
• D)As the total loan amount increases,the amount of advertising increases at a decreasing rate.

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Definitions:

Proprioceptive Neuromuscular Facilitation

A set of stretching techniques used to enhance both active and passive range of motion with the ultimate goal of improving functional movement.

Protein Nitrogen Fat

Components of nutritional science, focusing on proteins and fats as essential macronutrients and nitrogen as a fundamental element in protein structure.

Flexibility Status

A description of the range of motion available in a joint or group of joints, indicative of the malleability or elasticity of the muscles and ligaments.

Improved Relaxation

A state of reduced stress and increased calmness, often achieved through techniques like meditation or deep-breathing exercises.