Question

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    A Both Statement I & Statement II are correct Correct Answer Incorrect Answer
    B Both Statement I & Statement II are incorrect Correct Answer Incorrect Answer
    C Statement I is correct but Statement II is incorrect Correct Answer Incorrect Answer
    D Statement I is incorrect but Statement II is correct Correct Answer Incorrect Answer

    Solution

    Statement I: "In the simple linear regression model with an intercept, the regression slope when multiplied by the explanatory variable X will give the predicted Y." This statement is incorrect. In a simple linear regression model, the predicted value of Y is given by the equation  y = β0 + β1X, The slope β1 when multiplied by X gives the change in Y for a unit change in X, but it does not give the predicted value of Y directly, we need to include intercept as well. Statement II: "In the simple linear regression model, the regression slope indicates by how many units Y increases, given a one-unit increase in X." This statement is correct. The slope β1in a linear regression model represents the change in the dependent variable Y for a one-unit change in the explanatory variable X.

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