Unformatted text preview: Intercept: a (what Y is when X is 0) Slope: b (how much Y changes when X changes by 1 unit) Slopes could be positive, negative, zero, or infinite Parameters: a and b Estimates: a = 3 and b = 2 Changes in the intercept: Lead to parallel shifts of the line Changes in the slope: Lead to rotations of the line The slope of a curve: Different points on a curve may have different slopes. X Y Slope Δ Δ = . Δ means “the change in.” Changes in percentage terms: From $100 (X ) to $105 (X 1 ): % 5 05 . 100 5 100 100 105 1 = = = − = − = Δ X X X X X...
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- Spring '08
- Economics, 5%, $100, $105, Adam Y.C. Lei