Consider the Sample Regression Equation = 12 + 3x₁

question 112

Multiple Choice

Consider the sample regression equation = 12 + 3x₁ - 5x₂ + 7x₃ - 2x₄. When x₁ increases by 1 unit and x₂ increases by 2 units, while x₃ and x₄ remain unchanged, what change would you expect in the predicted y?

• A) Decrease by 2
• B) Decrease by 4
• C) Decrease by 7
• D) No change in predicted y

---

Definitions:

Production Technology

The methods, equipment, and processes used to produce goods and services, including advancements that improve efficiency and productivity.

Hourly Wage Rate

The rate of pay given to employees per hour worked, often used to calculate earnings for part-time or casual work.

Production Technology

This term refers to the methods and processes used to create goods and services, incorporating tools, machinery, techniques, and knowledge.

Labor Intensive

Describing industries or processes that require a large amount of labor to produce goods or services, often associated with higher employment but lower capital investment.