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 X_i 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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Quizplus · Accepted Answer

The intercept in a sample regression function can be interpreted if your sample contains values of the explanatory variables around the origin, which is represented by X_i. This is because the intercept represents the value of the dependent variable when all the explanatory variables are at zero.

Interpreting the Intercept in a Sample Regression Function Is