The exercise involving data in this and subsequent sections were designed to be

Question

The exercise involving data in this and subsequent sections were designed to be solved using Excel.

a. In the two independent variable case, the coefficient x1 represents the expected change in (Select your answer : y, x1, x2) corresponding to a one unit increase in (Select your answer: y, x1, x2) when (Select your answer: y, x1, x2) is held constant.

In the single independent variable case, the coefficient x1 represents the expected change in (Select your answer: y, x1, x2) corresponding to a one unit increase in (Select your answer: y, x1, x2) .

b. Could multicollinearity explain why the coefficient of x1 differs in the two models? Assume that x1 and x2 are correlated.

(Select your answer:)

Yes, because a change in x1 would be accompanied by a change in x2

Yes, because a change in x1 would not be accompanied by a change in x2

Explanation / Answer

a. In the two independent variable case, the coefficient x1 represents the expected change in ( answer :y) corresponding to a one unit increase in ( answer: x1) when ( answer: x2) is held constant.

In the single independent variable case, the coefficient x1 represents the expected change in (answer: y) corresponding to a one unit increase in (answer: x1) .

b. Yes, because a change in x1 would be accompanied by a change in x2

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