Multiplying the dependent variable by 100 and the explanatory variable by 100,000 leaves the A)OLS estimate of the slope the same. B)OLS estimate of the intercept the same. C)regression R² the same. D)variance of the OLS estimators the same.

Question

Quizplus · Accepted Answer

Multiplying the dependent and explanatory variables by constants does not affect the R², as it is a measure of the proportion of variance explained by the model, which is scale-invariant.

Multiplying the Dependent Variable by 100 and the Explanatory Variable