The Interpretation of the Slope Coefficient in the Model $\ln \left( Y _ { i } \right) = \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i }$

question 13

Multiple Choice

The interpretation of the slope coefficient in the model $\ln \left( Y _ { i } \right) = \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i }$
is as follows:

• A) a 1 % change in X is associated with a \(\beta _ { 1 } \%\) change in Y .
• B) a change in X by one unit is associated with a 100 \(\beta _ { 1 } \%\) change in Y .
• C) a 1 % change in X is associated with a change in Y of 0.01 \(\beta _ { 1 }\)
• D) a change in X by one unit is associated with a \(\beta _ { 1 }\) change in Y .

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Definitions:

Motor

Relating to the movement or mechanism of physical actions and coordination in organisms.

Central

Serving as the most important or core part of something.

Efferent

Referring to nerve fibers that carry impulses away from the central nervous system to effectors (such as muscles or glands).

Afferent

Relating to or denoting nerve fibers that carry sensory information toward the central nervous system.