2) The interpretation of the slope coefficient in the model Yi = ?0 + ?1 ln(Xi) + ui is as follows: A) a 1% change in X is associated with a ?1 % change in Y. B) a 1% change in X is associated with a change in Y of 0.01 ?1. C) a change in X by one unit is associated with a ?1 100% change in Y. D) a change in X by one unit is associated with a ?1 change in Y.
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The given model is: $$Y_i = B_0 + B_1 \ln(X_i) + u_i$$ Now, let's find the derivative of $Y_i$ with respect to $X_i$: $$\frac{dY_i}{dX_i} = B_1 \cdot \frac{1}{X_i}$$ Now, let's find the percentage change in $Y_i$ with respect to the percentage change in Show more…
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The interpretation of the slope coefficient in the model Yi = B0 + B1 ln(Xi) + ui is as follows: A) a 1% change in X is associated with a B1 % change in Y B) a 1% change in X is associated with a change in Y of 0.01 B1 C) a change in X by one unit is associated with a B1 100% change in Y D) a change in X by one unit is associated with a B1 change in Y.
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