7.3 Predicting Dependent Variables and Functional Forms Flashcards
1
Q
What is the slope interpretation for a Log-Lin model?
A
Relative change in dependent for
an Absolute change in independent
2
Q
What is the slope interpretation for a Lin-Log model?
A
Absolute change in dependent
for a Relative change in independent
3
Q
What is the slope interpretation for a Log-Log model?
A
Relative change in dependent for a relative change in the independent
4
Q
How do you calculate the predicted value?
A
5
Q
How do you calculate a confidence interval for a predicted value?
A
Predicted value +/- tf x Sf
Where tf = critical value and Sf = standard error
6
Q
In what situation would you transform one or both of the variables?
A
If the relationship between the variables is not linear
