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

question 60

Multiple Choice

The interpretation of the slope coefficient in the model ln(Yi) = β0 + β1 ln(Xi) + ui 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 β1 change in Y.
• C)a change in X by one unit is associated with a 100 β1 % change in Y.
• D)a 1% change in X is associated with a change in Y of 0.01 β1.