Reading 11- LOS E (Part 2): Q4 correct, face, following, class, equation

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4.In the estimated regression equation Y = 0.78 − 1.5X, which of the following is a correct interpretation of the slope coefficient?

A)   The dependent variable declines by 1.5 units if X increases by 1 unit.

B)   If the value of X is zero, the value of Y will be -1.5.

C)   The independent variable increases by 1.5 units if Y decreases by 1 unit.

D)   -1.5 is the elasticity of Y with respect to X.

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The correct answer was A)

The slope represents the change in the dependent variable for a one-unit change in the independent variable. If the value of X is zero, the value of Y will be equal to the intercept, in this case, 0.78.