Question: State with reason whether the following statements are true (T) or false (F): a. For the double-log model, the slope and elasticity coefficients are the
State with reason whether the following statements are true (T) or false (F):
a. For the double-log model, the slope and elasticity coefficients are the same.
b. For the linear-in-variable (LIV) model, the slope coefficient is constant but the elasticity coefficient is variable, whereas for the log-log model, the elasticity coefficient is constant but the slope is variable.
c. The R2 of a log-log model can be compared with that of a log-lin model but not with that of a lin-log model.
d. The R2 of a lin-log model can be compared with that of a linear (in variables) model but not with that of a double-log or log-lin model.
e. Model A: In Y = - 0.6 + 0.4X; r2 = 0.85
Model B: Ŷ = 1.3 + 2.2X; r2 = 0.73
Model A is a better model because its r2 is higher.
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