Question

In a regression analysis involving 36 observations, the following estimated regression equation was developed. û = 10 - 5X1 +

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Answer #1

Ans. Option d

The coefficient of X1 indicates that an increase in X1 by 1 unit, the Y will decrease by 5 units if everything else is constant.

So, an increase in X1 by 2 units will decrease Y by 2*5 or 10 units.

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