Module 1.3 Predicting Dependent Variables and Functional Forms

Question 1

confidence interval two tailed critical t test (n degrees of freedom) =

Answer 1

predicted value +/- (critical t value x standard error)

Question 2

when do you use the log lin model?

Answer 2

dependent variable is logarithmic while independent variable is linear

Question 3

when do you use the lin log model?

Answer 3

if the dependent variable is linear while the independent variable is logarithmic

Question 4

when do you use the log log model?

Answer 4

both the dependent variable and independent variable are logarithmic

Question 5

how is slope coefficient interpreted in log lin model?

Answer 5

relative change in dependent variable for absolute change in independent variable

Question 6

how is slope coefficient interpreted in lin log model?

Answer 6

absolute change in dependent variable for relative change in independent variable

Question 7

how is slope coefficient interpreted in log log model

Answer 7

relative change in dependent variable for relative change in independent variable

Question 8

variation in the dependent variable explained by independent variable

Answer 8

regression sum of squares