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The Interpretation of the Slope Coefficient in the Model Yi

Question 24

Multiple Choice

The interpretation of the slope coefficient in the model Yi = β0 + β1 ln(Xi) + ui is as follows:


A) a 1% change in X is associated with a β1 % change in Y.
B) a 1% change in X is associated with a change in Y of 0.01 β1.
C) a change in X by one unit is associated with a β1 100% change in Y.
D) a change in X by one unit is associated with a β1 change in Y.

Correct Answer:

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