Multiple Regression & Correlation & Simple linear Regression / 100% Correct Answers

A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. A statistical analyst discovers that capital spending by corporations has a significant inverse relationship with wage spending. What should the microeconomist who developed this multiple regression model be particularly concerned with? - Collinearity The Variance Inflationary Factor (VIF) measures the - correlation of the X variables with each other In a multiple regression problem involving two independent variables, if b subscript 1 is computed to be plus 2, it means that - the estimated mean Y increases by 2 units for each increase of 1 unit of X subscript 1 , holding X subscript 2 constant The coefficient of multiple determination r squared - measures the proportion of variation in Y that is explained by X subscript 1 and X subscript 2