Suppose a multiple regression model is given by y cap 054x

Suppose a multiple regression model is given by y cap = - 0.54x_1 + 5.51x_2 - 21.16. What would an interpretation of the coefficient of x_1 be? Fill in the blank below. An interpretation of the coefficient of x_1 would be: \"if x_1 increases by 1 unit, then the response variable will decrease by units, on average, while holding x_2 constant.\"

Solution

An interpreation of the coefficient of X1 would be, \"if x1 increases by 1 unit, then the response variable will decrease by 0.54 units, on average, while holding x2 constant.