15 In the equation Yc 31 42X1 35X2 a Yc 387 if X1 X2 0

15.       In the equation: Y_c = 31 + 4.2X₁ + 3.5X₂:

a.         Y_c = 38.7 if X₁ + X₂ = 0

b.         Y_c increases by 31 for every 1 unit increased in X₁ and X₂

c.         Y_c decreases by 3.5 if X₂ decreases by 1 unit

d.         Y_c increases by 4.2 if X₁ decreases by 1 unit and X₂ is unchanged

Solution

(D) is the correct interpretation (should have been expected value of Yc)