Question

Given below are two statements:
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.
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.
In the light of the above statements, choose the most appropriate answer from the options given below :

• A. Both Statement I and Statement II are correct.
• B. Both Statement I and Statement II are incorrect.
• C. Statement I is correct but Statement II is incorrect.
• D. Statement I is incorrect but Statement II is correct.

Answer 1

Answer: (D)

Statement I is incorrect but Statement II is correct.

Answer 2

The correct answer is (D) : Statement I is incorrect but Statement II is correct.