(Requires Calculus)In the multiple regression model you estimate the effect on Y_i of a unit change in one of the X_i while holding all other regressors constant. This A)makes little sense, because in the real world all other variables change. B)corresponds to the economic principle of mutatis mutandis. C)leaves the formula for the coefficient in the single explanatory variable case unaffected. D)corresponds to taking a partial derivative in mathematics.

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Quizplus · Accepted Answer

Taking a partial derivative in mathematics refers to computing the rate of change of a function with respect to only one of its variables, while holding all other variables constant (ceteris paribus). This is exactly what is done in estimating the effect of a unit change in one X_i in the multiple regression model, while holding all other regressors constant.

(Requires Calculus)In the Multiple Regression Model You Estimate the Effect