The Interpretation of the Slope Coefficient in the Model Ln(Y_i)=

question 54

Multiple Choice

The interpretation of the slope coefficient in the model ln(Y_i) = β₀ + β₁X_i + u_i is as follows:

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

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Definitions:

Framing Error

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A preconceived opinion or judgment towards people or ideas without sufficient knowledge, fairness, or reason, often based on stereotypes.

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