A multiple regression model has the form: = 3.25 + 2.5x₁ + 1.5x₂.If x₂ increases by 1 unit,holding x₁ constant,the value of y will increase on average by: A)3.25 units. B)2.5 units. C)1.5 units. D)7.25 units.

Question

Quizplus · Accepted Answer

According to the problem, we are holding x₁ constant and only changing x₂ by 1 unit. Therefore, the coefficient of x₂ (1.5) is the only one that matters in terms of predicting how the change in x₂ affects the value of y. So, if x₂ increases by 1 unit, y will increase on average by 1.5 units (holding x₁ constant). The constant term (3.25) does not come into play, since it represents the expected value of y when all predictor variables are equal to 0.

A Multiple Regression Model Has the Form: = 3