Question: 1.We analyzed a linear model, where some variables take the logarithm transformation. The model is shown below: ln(Spending) = 0.6 + 0.0053 * ln(salary) +

1.We analyzed a linear model, where some variables take the logarithm transformation. The model is shown below:

ln(Spending) = 0.6 + 0.0053 * ln(salary) + 0.032 * distance + e

Please answer the following question:

Why do we sometimes take the logarithm of the variables before adding them to the regression model?

How to properly interpret the coefficient estimate on thevariable "ln(salary)"?

How to properly interpret the coefficient estimate on the variable "distance"?

Suppose the p-value for the coefficient estimate 0.032 is 0.15. What is the meaning of this p-value? Is the coefficient estimates on the variable "distance" statistically significant at the 5% level?

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