A recent study considered the effects of innovation on employment in Latin America. It seems reasonable that as more fir

produce new products, they would need more workers, and employment would rise. For small firms in Argentina, let $y$ ?be

yearly percentage of employment growth and let $x$ ?be the percentage of small firms that are product or process innovators

Assume the estimated regression line is $y=-5\mathrm{.}399+5\mathrm{.}790x.$

Suppose $x=0\mathrm{.}9\%.$ ?Find the expected value of $Y.$ ?Round to four decimal places.

$E(Y|0\mathrm{.}9)=$

Interpret this result.

If $0\mathrm{.}9\%$ ?of the small firms are product or process innovators, there will be an expected increase in employment

of $0\mathrm{.}188\%.$

If $0\mathrm{.}188\%$ ?of the small firms are product or process innovators, there will be an expected decrease in employment

of $0\mathrm{.}9\%.$

If $0\mathrm{.}9\%$ ?of the small firms are product or process innovators, there will be an expected decrease in employment

of $0\mathrm{.}188\%.$

If $0\mathrm{.}188\%$ ?of the small firms are product or process innovators, there will be an expected increase in employment

of $0\mathrm{.}9\%.$