BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

BUSINESS ANALYTICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In a simple linear regression model, y = ß0 + ß1x + the parameter ß1 represents the ____
A
intercept
B
slope of the true regression line
C
mean value of x
D
error term
Explanation: 

Detailed explanation-1: -The regression model is given by: Y = + X + where is the y intercept (the value of Y where X = 0), is the slope of the line, and is a random error term. It may also be given as: Y = 0 + 1X + where 0 is the y intercept, 1 is the slope of the line, and is a random error term.

Detailed explanation-2: -True The slope of the simple linear regression equation represents the average change in the value of the dependent variable per unit change in the independent variable (X).

Detailed explanation-3: -To calculate slope for a regression line, you’ll need to divide the standard deviation of y values by the standard deviation of x values and then multiply this by the correlation between x and y. The slope can be negative, which would show a line going downhill rather than upwards.

Detailed explanation-4: -Answer and Explanation: According to the definition of the equation of regression analysis, the Y-intercept represents the predicted value of Y when X = 0.

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