In the simple linear regression model, the regression slope A) ...

[big1devin]

In the simple linear regression model, the regression slope
 
  A) indicates by how many percent Y increases, given a one percent increase in X.
  B) when multiplied with the explanatory variable will give you the predicted Y.
  C) indicates by how many units Y increases, given a one unit increase in X.
  D) represents the elasticity of Y on X.

Question 2

You have to worry about perfect multicollinearity in the multiple regression model because
 
  A) many economic variables are perfectly correlated.
  B) the OLS estimator is no longer BLUE.
  C) the OLS estimator cannot be computed in this situation.
  D) in real life, economic variables change together all the time.

[Chocorrol77]

Answer to Question 1

Answer: C

Answer to Question 2

Answer: C

[big1devin]

Correct answers!

[Chocorrol77]

Great! Please up vote