Question

The regression analysis at the bottom relates average annual per capita beef consumption (in pounds) and the independent variables "annual per capita pork consumption" (in pounds) and "average annual beef price" (in dollars per pound). the coefficient for beef price, -12, tells us that:

Answer 1

The regression coefficient for beef price tells us that beef consumption will decrease by 12 pounds for a $1 increase in beef price.

A regression coefficient tells us the quantum and direction of change in the dependant variable for a unit change in the independent variable.

The question above deals with multiple regression. The formula for multiple regression is as follows:

Y = a + b₁X₁ + b₂X₂

In the above equation, b₁ and b₂ are regression coefficients.