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    5. Suppose the relationship between Y and two explanatory variables in true model is Yi = 5+2.4X1i-3.5X

    Question

    Suppose the relationship between Y and two explanatory

    variables in true model is Yi = 5+2.4X1i-3.5X2i + ei . What is the value of beta(1) in the regression equation Yi = α + β 1 +ei if the values of correlation coefficient is 0.9 and variance of X1 and X2 is 2 and 8 respectively
    A 1.80 Correct Answer Incorrect Answer
    B 2.40 Correct Answer Incorrect Answer
    C -3.90 Correct Answer Incorrect Answer
    D -1.80 Correct Answer Incorrect Answer

    Solution

    Practice Next
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