For the logarithmic model y = β₀ + β₁ln(x) + ε, β₁ × 100% is the approximate percentage change in E(y) when x increases by 1%.

Name: For the logarithmic model y = β 0 + β 1 ln(x) + ε, β 1 × 100% is the approximate percentage change in E(y) when x increases by 1%.
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Question

Quizplus · Accepted Answer

The approximate percentage change in E(y) when x increases by 1% is given by β₁ × 0.01. The formula given in the question is not accurate for calculating percentage change.

For the Logarithmic Model Y = β0 + β1ln(x)

For the Logarithmic Model Y = β₀ + β₁ln(x)