How would you interpret the coefficient on x₂? A)The average square footage area of living space is 1,250 square feet. B)We would expect to pay approximately an additional $1,000 for each additional square foot of living space. C)We would expect to pay an additional $1,000 for each an additional 125 square foot of living space,given that the number of bedrooms and the number of miles from the beach are held constant. D)We would expect to pay,on average,an additional $125 for each additional square foot of living space,given that the number of bedrooms and the number of miles from the beach are held constant.

Question

Quizplus · Accepted Answer

The coefficient on a variable in a regression model typically represents the expected change in the dependent variable (e.g., price) for a one-unit increase in the independent variable (e.g., square footage), holding all other variables constant. Therefore, choice D correctly interprets the coefficient as the expected additional cost per square foot, assuming other factors like the number of bedrooms and distance from the beach are constant.

How Would You Interpret the Coefficient on X2

How Would You Interpret the Coefficient on X₂