1. Yield and fertilizer used are related through the equation: yield = 15 +2.5fertilizer. which of the following statements is true? a. If fertilizer increases by 1 unit, yield will increase by 15 units b. If fertilizer decreases by lunit yield will increase by 2.5 units c. If fertilizer is equal to zero, yield would equal 2.5 units d. If fertilizer increases by lunit yield would increase by 2.5 units e. None of the answers are correct Use the following information to solve questions 2 and 3. A farmer has 2 data points regarding the price and quantity demanded of tomatoes that he wants to use to calculate a linear relationship between the 2 variables. He observes that when the price of tomatoes is $2/1b the quantity demanded is 15lb. On the other hand, when the price of tomatoes decreases to $1/b, the quantity demanded becomes 201b. Based on these 2 points, the farmer wants to calculate the equation of a straight line of the form price = a +bQuantity, where a and b are the y-intercept and slope, respectively. 2. Based on the 2 data points available, what is the slope of the straight line (i.e., what is the value of b) a. 0.5 b. 0.25 c. 0.2 d. 0.1 e. Cannot be determined from the information given 3. Based on the 2 data points available, what is the y-intercept of the straight line (i.e., what is the value of a)? a. 4 b. 5 c. 3 d. 2 e. Cannot be determined from the information given 4. Which of the following statements is correct? a. A dummy variable is used to estimate nonlinear quadratic relationships between 2 variables b. A dummy variable can only be used as the dependent variable in a regression c. A dummy variable can only take two values (0 and 1) d. A dummy variable can only be used to estimate negative relationships between 2 variables e. None of the answers are correct