Regression results for the model Y=b0 + b1*X2 + b2* log (X3) + b3*X4 + b4*X5 are
ID: 3321745 • Letter: R
Question
Regression results for the model Y=b0 + b1*X2 + b2*log(X3) + b3*X4 + b4*X5 are provided as Y=8.86 – 0.01*X2 + 0.59*log(X3) + 1.12*X4 + 0.32*X5 . What is the meaning of b2?
One unit increase in X3 results in .59 unit increase in Y
One unit increase in X3 results in a .59 percent decrease in Y
One percent increase in X3 results in 59 unit decrease in Y
One unit increase in X3 results in .59 unit decrease in Y
How do you interpret the estimated value of 2 in the following model?
ln(y) = 1 + 2*ln(x)
a)
the elasticity of y with respect to x
b)
the mean value of ln(y) when ln(x) = 0.
c)
the slope of the line representing the relationship between y and x
d)
cannot be determined without more information
How do you interpret the estimated value of 2 in the following model?
ln(y) = 1 + 2*ln(x)
a)
the elasticity of y with respect to x
b)
the mean value of ln(y) when ln(x) = 0.
c)
the slope of the line representing the relationship between y and x
d)
cannot be determined without more information
Explanation / Answer
1. One unit increase in X3 results in .59 unit increase in Y thus A
2. c)the slope of the line representing the relationship between y and x