In a multiple regression framework, the slope coefficient on the regressor X₂_i A)takes into account the scale of the error term. B)is measured in the units of Y_i divided by units of X₂_i. C)is usually positive. D)is larger than the coefficient on X₁_i.

Question

Quizplus · Accepted Answer

The slope coefficient on X₂_i is measured in the units of Y_i divided by units of X₂_i, which means that it represents the change in Y for every unit change in the X₂_i, taking into account the units of both variables. The other options are not necessarily true.

In a Multiple Regression Framework, the Slope Coefficient on the Regressor