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:

Manufacturing Business

A business model that transforms raw materials into final products utilizing workers, machinery, and tools.

Direct Materials

Materials that can be directly associated with the production of specific goods, integral to their manufacturing.

Controller's Staff

Pertains to the team of accounting professionals supervised by the controller, responsible for managing a company’s financial and accounting functions.

Management Accountants

Professionals who prepare financial information for internal use by the management, aiding in decision-making processes.