For the exponential model ln(y)= β₀ + β₁x + ε,β₁ × 100% is the approximate percentage change in E(y)when x increases by one percent.

Name: For the exponential model ln(y)= β 0 + β 1 x + ε,β 1 × 100% is the approximate percentage change in E(y)when x increases by one percent.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

The correct formula for the approximate percentage change in E(y) when x increases by one percent is β₁ × 100, not β₁ × 100%. The percentage change should be expressed as a decimal.

For the Exponential Model Ln(y)= β0 + β1x + ε,β1

For the Exponential Model Ln(y)= β₀ + β₁x + ε,β₁