Exhibit 15-5 Below you are given a partial Excel output based on a sample of 25 observations. -Refer to Exhibit 15-5. The interpretation of the coefficient on x₁ is that A)a one unit change in x₁ will lead to a 25.625 unit change in y B)a one unit change in x₁ will lead to a 25.625 unit increase in y when all other variables are held constant C)a one unit change in x₁ will lead to a 25.625 unit increase in x₂ when all other variables are held constant D)It is impossible to interpret the coefficient.

Question

Quizplus · Accepted Answer

The coefficient on x₁ represents the change in y for every one unit change in x₁ when all other variables are held constant. Therefore, the interpretation of the coefficient is "a one unit change in x₁ will lead to a 25.625 unit increase in y when all other variables are held constant."

Exhibit 15-5 Below You Are Given a Partial Excel Output Based on Based