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Suppose You Estimate the Sample Regression Function log( Solar Syst^em Sales)=108,632.470.112 Solar System Tax Rate \log ( \text { Solar } \widehat {Syst}em \text { Sales} ) = 108,632.47 - 0.112 \cdot \text { Solar System Tax Rate }

Question 18

Multiple Choice

Suppose you estimate the sample regression function log( Solar Syst^em Sales) =108,632.470.112 Solar System Tax Rate \log ( \text { Solar } \widehat {Syst}em \text { Sales} ) = 108,632.47 - 0.112 \cdot \text { Solar System Tax Rate }
You should conclude that


A) a $1 increase in the solar system tax rate is associated with 0.112 fewer solar system sales.
B) a 1 percent increase in the solar system tax rate is associated with a 0.112 percent decrease in solar system sales.
C) a 1 dollar increase in the solar system tax rate is associated with 11.2 fewer solar system sales.
D) a $1 increase in the solar system tax rate is associated with a 0.112 percent decrease in solar system sales.

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