In the Model Ln(y) = β₀ + β₁ Ln(x)

question 108

Multiple Choice

In the model ln(y) = β₀ + β₁ ln(x) + ε, the coefficient β₁ is the approximate ________.

• A) change in E(y) when x increases by one unit
• B) percentage change in E(y) when x increases by 1%
• C) percentage change in E(y) when x increases by one unit
• D) change in E(y) when x increases by 1%

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