Question: How to interpret the coefficient on an indicator variable in a log-linear equation.

How to interpret the coefficient on an indicator variable in a log-linear equation.

Step by Step Solution

★★★★★

3.38 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

In a loglinear regression model interpreting the coefficient on an indicator variable is different from interpreting coefficients in a linear model He... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Introductory Econometrics Modern Questions!

(b) A researcher is interested in the relationship between annual income and household spending on healthcare. In order to test the hypothesis that the higher the income, the higher the spending on...

An agricultural economist believes that the amount of beef consumed (y) in tons in a year in the United States depends on the price of beef (x1) in dollars per pound, the price of pork (x2) in...

Highlight some functions of the Insurance Regulatory Authority(IRA) b)Describe the Principles of Social insurance

3. How to interpret the coefficient on a dummy variable in a log-linear equation.

I don't know how to show the data in this wabsite. 1. (20 points) For this exercise, you will use the social mobility. csv file in the Problem Set 5 folder on Canvas. The file contains data from...

Refer to the previous exercise. Let x1 = 1 for the advertisement and 0 otherwise, x2 = 1 for Muzak and 0 otherwise, and x1 = x2 = 0 for classical music. Likewise, let x3 = 1 for repeating in...

A realtor was investigating the price of real estate based on the size of the house in square feet x1 and if the house was within walking distance of an "A" rated public school. The indicator...

Confirming this is the correct form of use for log-linear being that question calls for (E-05=10^-5) Interpret the coefficient of the independent variable for the Log-Linear model. (E-05=10^-5) O 1%...

13.46 Houses, size, and garage Use the House Selling Prices OR data file on the books website to regress selling price in thousands on house size and whether the house has a garage. a. Report the...

Use the House Selling Prices OR data file on the text CD to regress selling price in thousands on house size and whether the house has a garage. a. Report the prediction equation. Find and interpret...

On June 1, 2021, Domino Foods borrows $5 million in a floating rate term loan that rolls over every 91 days. The interest rate is set at the current Treasury bill rate plus 0.95 percent and is...

A) You invest $12,000 today at 9 percent per year. How much will you have after 15 years? B) What is the current value of $100,000 after 10 years if the discount rate is 12 percent? C) You invest...

Meadow Incorporated produces product X - 5 4 7 in a joint manufacturing process. The company is studying whether to sell X - 5 4 7 at the split - off point or upgrade ( i . e . , further process )...

Discuss the accounting conventions that affect the application of accounting principles.

Congressman Patrick indicates that he is opposed to tax proposals that call for a flat tax rate because the structure would not tax those individuals who have the ability to pay the tax. Discuss the...

The governor of your state stated in a recent political speech that he has never supported any income tax increases as the tax rates have remained at the same level during his entire term of office....

Carmen has computed that her average tax rate is 16% and her marginal tax rate is 25% for the current year. She is considering whether to make a charitable contribution to her church before the end...

the newspaper reported last week that Tisch Enterprises earned $34.18 million this year. The report also stated that the firm's reutn on equity is 13 percent. The firm retsins 80 percent of its...

What is project scoping

Suppose an expression has connectives V ,, and variables p, r, s, t. How many rows does its truth table have?