Question 1: Do you suppose that when applying the multiple regression in the formula Y = b1X1 and b2X2 + E that X1 represents wages and X2 represents transportation costs?
Question 2: Discuss how X1 and X2 b slopes could create several different economic scenarios during different economic times of the year, or even during several different years, and why that might happen.
For example, during a recession, which would you suggest would have the greater overall effect on the economy?
Also, during good times, what would you suppose would be your answer? Explain whether it may change.