Multiplying the Dependent Variable by 100 and the Explanatory Variable

question 26

Multiple Choice

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 R² the same.
• D)variance of the OLS estimators the same.

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Definitions:

Determination

In the context of statistical analysis, often refers to the degree of variance in observations explained by the model, usually in the form of the coefficient of determination (R-squared).

Estimated Regression Equation

An equation that estimates the relationship between dependent and independent variables in a regression model.

SST

Total Sum of Squares; a measure that quantifies the total variance in the dependent variable that is to be explained by the independent variable(s) in a model.

SSE

Stands for the Sum of Squared Errors, a measure used in statistics to describe the discrepancy between the data and an estimation model.