Consider the following sample regression equation = 200 + 10x, where y is the supply for Product A (in 1,000s) and x is the price of Product A (in $). The slope coefficient indicates that if ________.
A) the price of Product A increases by $1, then we predict the supply to decrease by 10
B) the price of Product A increases by $1, then we predict the supply to increase by 10
C) the price of Product A increases by $1, then we predict the supply to decrease by 10,000
D) the price of Product A increases by $1, then we predict the supply to increase by 10,000

Question

Consider the following sample regression equation  = 200 + 10x, where y is the supply for Product A (in 1,000s) and x is the price of Product A (in $). The slope coefficient indicates that if ________.
A) the price of Product A increases by $1, then we predict the supply to decrease by 10 
B) the price of Product A increases by $1, then we predict the supply to increase by 10 
C) the price of Product A increases by $1, then we predict the supply to decrease by 10,000 
D) the price of Product A increases by $1, then we predict the supply to increase by 10,000

Quizplus · Accepted Answer

The Answer of Consider the following sample regression equation  = 200 + 10x, where y is the supply for Product A (in 1,000s) and x is the price of Product A (in $). The slope coefficient indicates that if ________.
A) the price of Product A increases by $1, then we predict the supply to decrease by 10 
B) the price of Product A increases by $1, then we predict the supply to increase by 10 
C) the price of Product A increases by $1, then we predict the supply to decrease by 10,000 
D) the price of Product A increases by $1, then we predict the supply to increase by 10,000

Consider the Following Sample Regression Equation = 200