Unit 1 Study Guide Review 2024 Updates

Problem Set 2: Part 2) Suppose a dataset had N=4 individuals, with values of Xi and Yi- Xi: 10; 12; 14; 16 Yi: 18; 15; 10; 1 7) Estimate the model ln(Yi) = β0 + β1*Xi + ui. 8) Describe the relationship between a change in X and the change in Y (The answer involves percentages.) --> Suppose we estimate b1 = -0.45. Which statement would accurately describe the relationship between changes in x and y? A. When x increases by 1, y decreases by 45%. B. When x increases by 100%, y decreases by 0.45%. C. When x increases by 100%, y decreases by 45. D. When x increases by 1, y decreases by 0.45. E. When x increases by 1, y decreases by 0.45%. 9) Estimate the model ln(Yi) = b0 + b1*ln(Xi) + ui. 10) Describe the relationship between a change in X and the change in Y. (Again, the answer involves percentages.) --> Suppose that we estimated ß1 = 1.2. Which statement would accurately describe the relationship between changes in x and y? A. When x increases by 100%, y increases by 1.2. B. When x increases by 1, y increases by 1.2%. C. When x