Consider the linear regression model Y; = Bo + Bị X; + U; and assume that E(U;|X;) = 4 for each i = 1,..., n. Which one of the following is true about the interpretation of B0? O a. Bo = E(Y;|X; = 0) O b. Bo is the estimated average change in the value of Y; when we change the value of X; O c. Bo is the predicted value of Y; when X; = 0 O d. Bo = E(Y;|X; = 0) – 4

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Consider the linear regression model Y; = Bo + Bị X; + U; and assume that E(U;|X;) = 4 for each i = 1,..., n. Which one of the
following is true about the interpretation of B0?
O a.
Bo = E(Y;|X; = 0)
O b. Bo is the estimated average change in the value of Y; when we change the value of X;
O c. Bo is the predicted value of Y; when X; = 0
O d. Bo = E(Y;|X; = 0) – 4
Transcribed Image Text:Consider the linear regression model Y; = Bo + Bị X; + U; and assume that E(U;|X;) = 4 for each i = 1,..., n. Which one of the following is true about the interpretation of B0? O a. Bo = E(Y;|X; = 0) O b. Bo is the estimated average change in the value of Y; when we change the value of X; O c. Bo is the predicted value of Y; when X; = 0 O d. Bo = E(Y;|X; = 0) – 4
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