Consider the following regression estimate: In Qd = 2.1 – 0.7 ln P + 0.07Urban Log quantity demanded is regressed on log price and a categorical variable equal to 1 if the market is classified as urban and O if it is rural. Which of the following most accurately describes the regression estimates? O A1 unit change in price is predicted to decrease quantity demanded by 0.7%, holding urban status constant. Urban markets have 0.07% higher demand than rural markets. O A 1% increase in price causes quantity demand to fall by 0.7%, holding urban status constant. Urban markets have 7% higher demand than rural markets, holding price constant O A1 unit change in price is predicted to decrease quantity demanded by 70%, holding urban status constant. Urban markets have 7% higher demand than rural markets. O A 1% increase in price causes quantity demand to fall by 0.7%, holding urban status constant. A 1% increase in Urban will cause quantity demand to increase by 0.07%, holding price constant
Consider the following regression estimate: In Qd = 2.1 – 0.7 ln P + 0.07Urban Log quantity demanded is regressed on log price and a categorical variable equal to 1 if the market is classified as urban and O if it is rural. Which of the following most accurately describes the regression estimates? O A1 unit change in price is predicted to decrease quantity demanded by 0.7%, holding urban status constant. Urban markets have 0.07% higher demand than rural markets. O A 1% increase in price causes quantity demand to fall by 0.7%, holding urban status constant. Urban markets have 7% higher demand than rural markets, holding price constant O A1 unit change in price is predicted to decrease quantity demanded by 70%, holding urban status constant. Urban markets have 7% higher demand than rural markets. O A 1% increase in price causes quantity demand to fall by 0.7%, holding urban status constant. A 1% increase in Urban will cause quantity demand to increase by 0.07%, holding price constant
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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please answer in detail in 30 minutes. and explain why other options are wrong.
Transcribed Image Text:Consider the following regression estimate:
In Qd = 2.1 – 0.7 ln P + 0.07Urban
Log quantity demanded is regressed on log price and a categorical variable equal to 1 if the market is
classified as urban and O if it is rural.
Which of the following most accurately describes the regression estimates?
O A1 unit change in price is predicted to decrease quantity demanded by 0.7%, holding urban status constant.
Urban markets have 0.07% higher demand than rural markets.
A 1% increase in price causes quantity demand to fall by 0.7%, holding urban status constant. Urban markets
have 7% higher demand than rural markets, holding price constant
O A1 unit change in price is predicted to decrease quantity demanded by 70%, holding urban status constant.
Urban markets have 7% higher demand than rural markets.
O A 1% increase in price causes quantity demand to fall by 0.7%, holding urban status constant. A 1% increase in
Urban will cause quantity demand to increase by 0.07%, holding price constant
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