QUESTION 2 10 Suppose we study the following model: log(score)-Po + |study + u w

Question

QUESTION 2 10 Suppose we study the following model: log(score)-Po + |study + u where score is the GRE score of students and study is the number of hours spent studying. We find ,-10 and 1 = 0.003 Given the function form of the model, which of the following is true regarding the interpretation of ? ca For a 1 hour increase in time spent studying, the predicted exam score rises by 0.3%. Ob. For °c. For a 1% increase in hours spent studying, the predicted exam score rises by 0.3%. a 1% crease in hours spent studying, the predicted exam score rises by 0.3 points. d. For a 1 hour increase in time spent studying, the predicted exam score rises by 0.3 points

Explanation / Answer

Ans is A

Since study is in normal term whereas score is in log terms which represent the change in % terms.

Thus a 1 hour increase in time spent studying will increase the average score by 0.3%

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---