I If an Inverse Relationship Exists Between the Dependent Variable

question 64

Multiple Choice

i. If an inverse relationship exists between the dependent variable and independent variables, the regression coefficients for the independent variables are positive. ii. Given a multiple linear equation Y' = 5.1 + 2.2X₁ - 3.5X₂, assuming other things are held constant, an increase of one unit in the second independent variable will cause a -3.5 unit change in Y.
iii. When the variance of the differences between the actual and the predicted values of the dependent variable are approximately the same, the variables are said to exhibit homoscedasticity.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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