Changing the unit of measurement of any independent variable, where log of the dependent variable appears in the regression:
A)affects only the intercept coefficient.
B)affects only the slope coefficient.
C)affects both the slope and intercept coefficients.
D)affects neither the slope nor the intercept coefficient.

Question

Quizplus · Accepted Answer

Changing the unit of measurement of any independent variable where log of the dependent variable appears in the regression affects only the intercept coefficient. This is because the intercept coefficient represents the predicted value of the dependent variable when all independent variables are equal to 0. When the unit of measurement of an independent variable changes, the intercept coefficient changes accordingly to keep the predicted value of the dependent variable at the same level. However, the slope coefficient remains unchanged as it represents the change in the dependent variable for a one-unit change in the independent variable.

Changing the Unit of Measurement of Any Independent Variable, Where