# Economics & Statistics

In the least squares equation, Ŷ = 10 + 20X the value of 20 indicates ____________.

The Y-intercept increases by 20 units for each unit increase in X

That Y increases by 20 units for each unit increase in X

That X increases by 20 units for each unit increase in Y

The error in prediction

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1. 20 represents the slope.

Slope is defined as the increase in y-value divided by the increase in x-value, that is:
slope = Δy / Δx

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posted by MathMate

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