In Which of the Following Models Does the Slope Coefficient

question 23

Multiple Choice

In which of the following models does the slope coefficient b₁ measure the change in when x increases by one unit?

• A) Linear regression model
• B) Exponential regression model
• C) Logarithmic regression model
• D) Log-log regression model

---

Definitions:

Prospect Theory

A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are uncertain.

Rational Consumers

Individuals who make decisions to maximize their utility or satisfaction based on the information available and their own preferences.

Marginal Utility

The change in total satisfaction or utility that a consumer experiences as a result of consuming one additional unit of a good or service.

Framing Effects

The influence on an individual's decision-making caused by the way information is presented, rather than just the information itself.