7.3: Predicting Dependent Variables and Functional Forms

Question 1

Forecasted value of the dependent variable, Yˆf formula:

Answer 1

Y^ = b^0 + b^1 * xf

Question 2

The log-lin model, in which the dependent variable is logarithmic but the independent variable is linear formula:

Answer 2

lnYi = b0 + b1Xi,

Question 3

The lin-log model, in which the dependent variable is linear but the independent variable is logarithmic formula;

Answer 3

Yi = b0 + b1 lnXi,

Question 4

The log-log model, where both the dependent and independent variables are in logarithmic form formula:

Answer 4

ln Yi = b0 + b1 ln Xi.