Multiplying the Dependent Variable by 100 and the Explanatory Variable $R ^ { 2 }$

question 1

Short Answer

Multiplying the dependent variable by 100 and the explanatory variable by 100,000 leaves the a. OLS estimate of the slope the same.
b. OLS estimate of the intercept the same.
c. regression $R ^ { 2 }$ the same.
d. variance of the OLS estimators the same.

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Definitions:

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The action of showing something to be right or reasonable, or the reasoning behind such a demonstration.

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A foundational statement or principle from which a conclusion is logically derived.

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This is an abbreviation for Existential Import, which suggests that for a proposition to be true, the entities mentioned in it must actually exist.

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