Q.

A multiple regression model has the form: y = 2 + 3x1 + 4x2. As x1 increases by 1 unit (holding x2 constant), y will

A. increase by 3 units
B. decrease by 3 units
C. increase by 4 units
D. decrease by 4 units
Answer» A. increase by 3 units
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bhaijaan
2 years ago

The correct answer is to increase by 3 units I don't know why the answer is given as an increase by 4, i have verified it the correct answer is increase by 3
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Anish Vikram Varma
1 year ago

The correct answer is 3 units. This is a fundamental concept in interpreting regression coefficients – they represent the change in the dependent variable associated with a one-unit change in the corresponding independent variable, holding all other variables constant.

In the above question, since the coefficient of X1 is 3, this implies that y changes 3 units for unit change in x1. Since X1 is increased by one unit, Y increases by 3 units.
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