Which of the following interpretations of the regression coefficients is correct

Question

Which of the following interpretations of the regression coefficients is correct?

If the listed price increases by $1, sales decrease by 0.8255 houses.

If the interest rate increases by 1%, sales decrease by 0.001225, given that prices remain constant.

If the interest rate increases by 1% while holding price constant, sales decrease by 12.25%.

If price increases by $1, sales decrease by 0.8255%, assuming that interest rates remain constant.

Summary measures Multiple R 0.9326 R-Square 0.8698 Adj R-Square 0.8498 StErr of Estimate 0.0259 ANOVA Table Source df SS MS F p-value Explained 2 0.0581 0.0290 43.4187 0.0000 Unexplained 13 0.0087 0.0007
Regression coefficients Coefficient Std Err t-value p-value Constant 4.3965 0.7549 5.8239 0.0001 Log Price -0.8255 0.2467 3.3456 0.0053 Log Interest -0.1225 0.1880 -0.6512 0.5262

Explanation / Answer

Which of the following interpretations of the regression coefficients is correct?

If the interest rate increases by 1% while holding price constant, sales decrease by 12.25%.

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