Consider the sample regression equation: = 12 + 2x₁

Question

Consider the sample regression equation: = 12 + 2x₁ - 6x₂ + 6x₃ + 2x₄.When x₁ increases 1 unit and x₂ increases 2 units,while x₃ and x₄ remain unchanged,what change would you expect in the predicted y? A) Decrease by 2 B) Decrease by 10 C) Increase by 2 D) No change in the predicted y

Quizplus · Accepted Answer

From the given regression equation, we can see that the coefficient of x₁ is 2 and the coefficient of x₂ is -6. Therefore, if x₁ increases by 1 unit and x₂ increases by 2 units, the net change in the predictors would be (2*1) + (-6*2) = -10. This means the predicted y would decrease by 10.

Consider the Sample Regression Equation: = 12 + 2x1