Regression

Question 1

CPM

Answer 1

Cost-per-thousand (CPM) = ( cost / impressions) x 1000

Question 2

CTR

Answer 2

Clickthrough rate (CTR) = (Clicks / Impressions)

Question 3

CVR

Answer 3

sales / clicks

Question 4

CPC

Answer 4

Cost-per-click (CPC) = Cost / Clicks

Question 5

Cost per conversion

Answer 5

Cost / conversion

Question 6

Return on advertising spend (ROAS)

Answer 6

profit / cost

Question 7

Conversion rate per sale

Answer 7

Sales / conversions

Question 8

Cost per sale

Answer 8

Cost / Sales

Question 9

alternative profit

Answer 9

impressions x CTR x (CVR x M - CPC)

Question 10

Slope:

Answer 10

A unit change in X leads to β units change in Y

Question 11

Intercept:

Answer 11

Average value of Y when X = 0

Question 12

Y X

Answer 12

A unit change in X leads to β units change in Y

Question 13

Y Log(x)

Answer 13

A 1% change in X leads to a β units change in Y

Question 14

log(y) x

Answer 14

A unit change in X leads to a β % change in Y

Question 15

log(y) log (x)

Answer 15

A 1% change in X leads to a β % change in Y

Question 16

biased results when

Answer 16

Omitting relevant variables or incorrectly specifying the relationship between variables

Question 17

How to obtain coefficients that are interpreted as elasticities?

Answer 17

Transforming the

variables and calculating by Natural logarithm (Ln) transformations

Question 18

Natural logarithm (LN) transformations:

Answer 18

ln⁡(ProductSales_i )=β_0+β_1 ln⁡(VolumeOwned_i )

+ β_2 ln⁡(VolumeEarned_i)

Question 19

If a coefficient is an elasticity in log transformation we use an increase or a decrease in
percentage and not in percentage points
Ex.

Answer 19

For every 1% of increase in (…) leads to an increase of pvalue% in …

Question 20

interaction term

Answer 20

Y_i=β_0+β_1 X_(1,i)+β_2 X_(2,i)+β_3 X_(1,i)×X_(2,i)

X_(1,i)×X_(2,i)

Question 21

when interaction effect

Answer 21

when depends on or onfluence on