In a Multiple Regression Analysis,the Least Squares Prediction Equation Is $\hat { y }$

question 106

Multiple Choice

In a multiple regression analysis,the least squares prediction equation is computed as $\hat { y }$
= 84.2 + 6.3x₁ - 9.4x₂.If we hold x₂ constant and increase x₁ by 2 units,what is the estimated change in the mean value of y?

• A)-18.8
• B)-9.4
• C)12.6
• D)6.3
• E)90.5

---

Definitions:

Useful Life

The estimated duration a fixed asset is expected to be productive for its intended use, impacting depreciation calculations.

Net Cash Flows

The amount of cash that is generated or lost by a business during a given period, taking into account cash inflows and outflows from operating, investing, and financing activities.

Annual Incomes

The total amount of income received annually from all sources before any deductions.

Cash Payback

A capital budgeting technique that calculates the period required for an investment to generate cash flows sufficient to recover its initial cost.