Question: Which solution is correct? In an investigation of the effect of invest

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Question:

Which solution is correct?

In an investigation of the effect of investment in administrativebackup 20 local offices were asked to complete a questionnaire andprovided details of investment, x (10,000's of euro) and percentageincrease in production, y. Visual inspection of the data suggest arelationship of the form

E(y | x) = 0 + 1x+2x^2, var(y | x)=^2.

When this model is fit to the data the following parameterestimates are obtained:

Parameter             Estimate         S.E.
0                          0.60             0.872
1                          3.12             0.664
2                                   -0.27           0.109
^2                       0.890

Give point estimates for the rate at which E(y | x) is increasingwith respect to x, 1 +22x, when x = 3.

Okay
Solution 1:
E(y | x) = 0 + 1x+2x^2

E(X|Y) = 0.60 + 3.12(3) - 0.27(3)^2

...........................................................

or Solution 2:
E(y | x) = 1 + 22x

= 3.12 - 0.27(3)
............................................................

Many Thanks

Explanation / Answer

I thind the solution 2 is the correct one.

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