-A simple regression is run with the log of annual income in dollars as the dependent variable and the number of years of education as the independent variable .The coefficient of education will provide the following information:
A)The percent change in income predicted for a one percent increase in education.
B)The percent change in income predicted for a one-year increase in education.
C)The dollar change in income predicted for a one percent increase in education.
D)The dollar change in income predicted for a one-year increase in education.
E)None of the above

Question

-A simple regression is run with the log of annual income in dollars as the dependent variable and the number of years of education as the independent variable .The coefficient of education will provide the following information:
A)The percent change in income predicted for a one percent increase in education. 
B)The percent change in income predicted for a one-year increase in education. 
C)The dollar change in income predicted for a one percent increase in education. 
D)The dollar change in income predicted for a one-year increase in education. 
E)None of the above

Quizplus · Accepted Answer

The coefficient of education in a regression with the log of income as the dependent variable and years of education as the independent variable indicates the percent change in income predicted for a one-year increase in education.

-A Simple Regression Is Run with the Log of Annual