Multiplying the dependent variable by 100 and the explanatory variable by 100,000 leaves the
A)OLS estimate of the slope the same.
B)OLS estimate of the intercept the same.
C)regression R2 the same.
D)variance of the OLS estimators the same.

Question

Quizplus · Accepted Answer

Multiplying the dependent and explanatory variables by constants does not affect the R², as it is a measure of the proportion of variance explained by the model, which remains unchanged by scaling.

Multiplying the Dependent Variable by 100 and the Explanatory Variable