Question

Consider the following regression equation: Å· = 0.0143x + 0.7143. How much would the y change if the x increased by 1%?

a. 0.000143
b. 0.00143
c. 0.0143
d. 1.43

Answer 1

The change in y, when x is increased by 1%, is calculated by taking 1% of the coefficient of x, which is 0.000143. The correct answer is option a. 0.000143.

Step-by-step explanation:

To determine how much y would change if x increased by 1%, we must first understand the regression equation provided: Å· = 0.0143x + 0.7143. The coefficient of x (0.0143) represents the change in y for each unit increase in x. If x increases by 1%, we are essentially calculating 1% of 0.0143.

Therefore, we calculate the change in y as follows:

• 1% of 0.0143 is 0.0143 * 0.01.
• 0.0143 * 0.01 equals 0.000143.

Thus, if x increases by 1%, y would change by 0.000143.