The Interpretation of the Slope Coefficient in the Model Y_i

question 24

Multiple Choice

The interpretation of the slope coefficient in the model Y_i = β₀ + β₁ ln(X_i) + u_i is as follows:

• A)a 1% change in X is associated with a β₁ % change in Y.
• B)a 1% change in X is associated with a change in Y of 0.01 β₁.
• C)a change in X by one unit is associated with a β₁ 100% change in Y.
• D)a change in X by one unit is associated with a β₁ change in Y.