Given a log log model lnY_i=B₀B₁lnX_i, we interpret the results as: A) A one unit increase in X is expected to lead to a B₁ change in Y_i. B) A one unit increase in Xis expected to lead to a B₁% change in Y_i. C) A one unit increase in X is expected to lead to a B₁/100 change in Y_i. D) A one percent increase in X is expected to lead to a B₁percent change in Y_i.

Question

Quizplus · Accepted Answer

The presence of logarithmic functions in the model implies that a one percent change in the independent variable X would lead to a change in the dependent variable Y by the coefficient of the logarithmic term B₁percent. Therefore, option D is the best choice.

Given a Log Log Model LnYi=B0B1lnXi, We Interpret the Results

Given a Log Log Model LnY_i=B₀B₁lnX_i, We Interpret the Results