An Economist Estimates the Following Model: Y = β₀

question 20

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