A Multiple Regression Model Has the Form $\hat { Y }$

question 81

Multiple Choice

A multiple regression model has the form $\hat { Y }$ = b₀ + b₁x₁ + b₂x₂.The coefficient b₁ is interpreted as the:

• A) estimated change in y per unit change in x₁.
• B) estimated change in y per unit change in x₁,holding x₂constant.
• C) estimated change in y per unit change in x₁,when x₁ and x₂ values are correlated.
• D) estimated change in y per unit change in x₂,holding x₁ constant.

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Definitions:

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources.

Margin

The difference between the selling price of a product or service and its production or acquisition costs, often expressed as a percentage of the selling price.

Incentives

Incentives are benefits or rewards provided to encourage specific behaviors or actions, playing a crucial role in economic decision-making.