Consider the Sample Regression Equation: = 12 + 2x₁

question 53

Multiple Choice

Consider the sample regression equation: = 12 + 2x₁ - 6x₂ + 6x₃ + 2x₄. When x₁ increases 1 unit and x₂ increases 2 units, while x₃ and x₄ remain unchanged, what change would you expect in the predicted y?

• A) Decrease by 2
• B) Decrease by 10
• C) Increase by 2
• D) No change in the predicted y

---

Definitions:

Gross National Product

The total value of all goods and services produced by a country's residents over a specific time period, including income from overseas investments.

Services Provided

The actions or activities carried out by a company or an individual to satisfy a customer's needs or wants.

Human Development Index

An index measuring three basic dimensions of human development: life expectancy, education, and per capita income indicators, used to rank countries into tiers of human development.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, to assess the relative value of the currencies and the cost of living.