Interpreting the Intercept in a Sample Regression Function Is

question 43

Multiple Choice

Interpreting the intercept in a sample regression function is

• A)not reasonable because you never observe values of the explanatory variables around the origin.
• B)reasonable because under certain conditions the estimator is BLUE.
• C)reasonable if your sample contains values of Xi around the origin.
• D)not reasonable because economists are interested in the effect of a change in X on the change in Y.

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Definitions:

Dried Up Lake Bed

The base of a former lake that has lost its water content and become dry, often leaving behind salt flats, minerals, or arid land.

Clastic Sediments

Sediments made up of fragments, or clasts, of pre-existing minerals and rock that have been transported and deposited by wind, water, or ice.

Amount Of Sorting

The degree to which sediment particles are of uniform size, which influences the texture and porosity of sedimentary rocks.

Climate

A pattern of weather conditions in an area over a long period of time.