Suppose you've run a regression relating log(Output) to log(Worker Hours) in Excel. You are willing to make the necessary assumptions to deduce causality and run hypothesis tests. Your results are as follows: How should you interpret the coefficient on Log(Worker Hours) of 2.69?
A) A 1% increase in Worker Hours leads to a 2.69% increase in Output.
B) A 1 unit increase in Worker Hours leads to a 2.69% increase in Output.
C) A 1% increase in Worker Hours leads to a .0269% increase in Output.
D) A 2.69% increase in Worker Hours leads to a 1% increase in Output.
Correct Answer:
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