QUESTION 1 3, if A2 were to increase by 5 units, holding For the multiple regres

Question

QUESTION 1 3, if A2 were to increase by 5 units, holding For the multiple regression model and 3 constant, the value of Ywould be expected to decrease by 50 units. True False QUESTION 2 If a categorical variable is to be included in a multiple regression, a dummy variable for each category of the variable should be used, but the original categorical variables should not be sued. True False QUESTION 3 The adjusted R adjusts Re for: a. low correlation b. outliers C. non-linearity d. the number of explanatory variables in a multiple regression model

Explanation / Answer

Question 1) Answer of this question is option first i.e. TRUE.

To understandard answer , let us consider

Y^=40+15*X1- 10*X2 + 5*X3

Here coefficient of X2 is -10 & which represents if we increase the value of X2 by one unit , holding X1 & X3 constant ,

y would be decrease by 10 units .Therefore , we were increase the value of X2 by five units , holding X1 & X3 constant ,y would be decrease by 10*5=50 units .

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