Question
Consider a Log-Linear Model where the dependent variable is the quantity of sales as the number of sales in a month. One independent variable is
Consider a Log-Linear Model where the dependent variable is the quantity of sales as the number of sales in a month. One independent variable is price in dollars. The coefficient on price is ?0.038. What do the results of the Log-Linear Model suggest?
Group of answer choices
On average, a $1 increase in price results in a 0.038 decrease in the number of sales in a month
On average, a 1% increase in price results in a 0.038% decrease in the number of sales in a month
On average, a 1% increase in price results in a 0.038 decrease in the number of sales in a month
On average, a $1 increase in price results in a 3.8% decrease in the number of sales in a month
Step by Step Solution
There are 3 Steps involved in it
Step: 1
On average a 1 increase in price results in a 0038 decre...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Applied Statistics For Public And Nonprofit Administration
Authors: Kenneth J. Meier, Jeffrey L. Brudney, John Bohte
9th Edition
1285737237, 978-1285974521, 1285974522, 978-1285737232
Students also viewed these Economics questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App