Exercise 1521 In the two independent variable case the coeff

{Exercise 15.21}

In the two independent variable case, the coefficient x1 represents the expected change in _________________ corresponding to a one unit increase in _________________ when _________________ is held constant.

In the single independent variable case, the coefficient x1 represents the expected change in _________________ corresponding to a one unit increase in _________________ .

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

In the two independent variable case, the coefficient x1 represents the expected change in ____________Y_____ corresponding to a one unit increase in ____X1_____________ when ________X2_________ is held constant.

In the single independent variable case, the coefficient x1 represents the expected change in ____________Y_____ corresponding to a one unit increase in ______X1___________ .