Consider the Regression Equation Y = 5 + 16X₁

Multiple Choice

Consider the regression equation Y = 5 + 16X₁ + 38X₂ relating annual expenditures on a particular product Y to X₁ and X₂, where Which of the following is FALSE? The equation suggests

A) An upper class person could be expected on the average to spend $38 per year more than a lower class person on the product.
B) A middle class person could be expected on the average to spend $16 more per year on the product than a lower class person.
C) A lower class person could be expected on the average to spend $5 per year on the product.
D) An upper class person could be expected on the average to spend $22 more per year on the product than a middle class person.
E) An upper class person could be expected on the average to spend $38 per year on the product.