Consider the regression model = 50 + 25x₁ - 7x₂ - 6x₁x₂.A 1-unit increase in x₂,while holding x₁ constant at a value of 3,decreases the value of y,on average,by: A)13 B)25 C)33 D)an amount that depends on the value of x₂

Question

Quizplus · Accepted Answer

According to the given regression model, the coefficient of x₂ is -7, which means a 1-unit increase in x₂ leads to a decrease of 7 in the value of y on average, holding all other variables constant. Therefore, the answer is 1 x (-7) = -7. However, the question specifies that x₁ is held constant at 3, so the effect of x₂ on y can be calculated as 3 times the coefficient of x₂, which is -7x3 = -21. Therefore, a 1-unit increase in x₂, while holding x₁ constant at 3, decreases the value of y by 21 on average. Rounded to the nearest integer, this is 25 (since the coefficient is -7 and 7/21 is approximately equal to 1/3 or 0.33, which rounds up to 1, and 1 x 25 = 25).

Consider the Regression Model = 50 + 25x1 -

Consider the Regression Model = 50 + 25x₁ -