Mathematics, 10.10.2020 14:01 andr8aa
How do you interpret the estimated value of coefficient of EDU in the following equation:
ln(SALARY)= 1 + 0.02ln(EDU)
where SALARY is annual salary (in thousands) and EDU is years of education?
a.
we predict that 1 year increase in years of education leads to $2000 increase in salary
b.
we predict that 1% increase in years of education leads to 2% increase in salary
c.
we predict that 1 year increase in years of education leads to 2% increase in salary
d.
we predict that 1% increase in years of education leads to 0.02% increase in salary
Answers: 1
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How do you interpret the estimated value of coefficient of EDU in the following equation:
ln(SALARY...
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