The interpretation of the slope coefficient in the model ln(Yi)= β0 + β1Xi + ui is as follows:
A)a 1% change in X is associated with a β1 % change in Y.
B)a change in X by one unit is associated with a 100 β1 % change in Y.
C)a 1% change in X is associated with a change in Y of 0.01 β1.
D)a change in X by one unit is associated with a β1 change in Y.

Question

Quizplus · Accepted Answer

In a log-linear model, the slope coefficient β1 represents the percentage change in Y for a one-unit change in X. Specifically, a one-unit increase in X is associated with a 100β1 percent change in Y.

The Interpretation of the Slope Coefficient in the Model Ln(Yi)=