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A Multiple Regression Model Has the Form Y^=104x1+3x2\hat { Y } = 10 - 4 x _ { 1 } + 3 x _ { 2 }

Question 65

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A multiple regression model has the form Y^=104x1+3x2\hat { Y } = 10 - 4 x _ { 1 } + 3 x _ { 2 } , where the dependent variable Y represents (in $1,000) , x1x _ { 1 } represents unit price (in dollars) , and x2x _ { 2 } represents advertisement (in dollars) . As x1x _ { 1 } increases by $1, while holding x2x _ { 2 } fixed, then sales are expected to


A) increase by $7
B) increase by $13
C) decrease by $4
D) decrease by $4,000
E) remain the same

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