In the two independent variable case, the coefficient x 1 represents the expecte
ID: 3435529 • Letter: I
Question
In the two independent variable case, the coefficient x1 represents the expected change in Selectyx1x2Item 1 corresponding to a one unit increase in Selectyx1x2Item 2 when Selectyx1x2Item 3 is held constant.
In the single independent variable case, the coefficient x1 represents the expected change in Selectyx1x2Item 4 corresponding to a one unit increase in Selectyx1x2Item 5 .
Could multicollinearity explain why the coefficient of x1 differs in the two models? Assume that x1 and x2 are correlated.
SelectYes, because a change in x1 would be accompanied by a change in x2Yes, because a change in x1 would not be accompanied by a change in x2
Explanation / Answer
In the two independent variable case, the coefficient x1 represents the expected change in y corresponding to a one unit increase in x1 when x2 is held constant.
In the single independent variable case, the coefficient x1 represents the expected change in y corresponding to a one unit increase in x1.
Yes, because a change in x1 would be accompanied by a change in x2.