An Economist Estimates the Following Model: Y = β₀

question 78

Multiple Choice

An economist estimates the following model: y = β₀ + β₁x + ε. She would like to construct interval estimates for y when x equals 2. She estimates a modified model where y is the response variable and the explanatory variable is now defined as x⁺ = x - 2. A portion of the regression results is shown in the accompanying table. According to the modified model, which of the following is the predicted value of y when x equals 2?

• A) 2.52
• B) 24.78
• C) 27.30
• D) 29.82

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Definitions:

Support

Assistance or encouragement provided to individuals or entities, often aimed at helping them overcome challenges or achieve goals.

Diverse

Characterized by variety or differences, often used to describe inclusive representation of different races, genders, ages, or cultural backgrounds.

Innovation

The creation of new ideas and their implementation or commercialization.

Limited Value

Something that has restricted worth or importance, often due to specific conditions or contexts.