A multiple regression model has the form Y = 12

Question

A multiple regression model has the form Y = 12 - 8X1 + 3X2 As X1 increases by 2 units holding X2 constant), Y is expected to
A) increase by 8 units
B) decrease by 8 units
C) increase by 16 units
D) decrease by 16 units

Quizplus · Accepted Answer

In the regression model, the coefficient of X1 is -8, meaning for each unit increase in X1, Y decreases by 8 units. Therefore, if X1 increases by 2 units, Y is expected to decrease by 16 units (2 * -8 = -16).