Suppose that you have the following fitted value: log Income; = 3.2145 + 0.1343 × log Expi (0.0195) (0.00458) where Exp; is the number of years of working experience of individual i. Find the correct interpretation(s) of the slope coefficient estimates. The elasticity of income on working experience is 13.43. An additional year of working experience will increase the individual's income by 0.1343%. An additional percentage increase of working experience will increase the individual's income by 0.1343%. An additional year of working experience will increase the individual's income by 13.43%.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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Suppose that you have the following fitted value:
log Income,
=
3.2145+ 0.1343 × log Expi
(0.0195) (0.00458)
where Expi is the number of years of working experience of individual i. Find the correct interpretation(s) of the slope coefficient estimates.
The elasticity of income on working experience is 13.43.
O An additional year of working experience will increase the individual's income by 0.1343%.
O An additional percentage increase of working experience will increase the individual's income by 0.1343%.
O An additional year of working experience will increase the individual's income by 13.43%.
Transcribed Image Text:Suppose that you have the following fitted value: log Income, = 3.2145+ 0.1343 × log Expi (0.0195) (0.00458) where Expi is the number of years of working experience of individual i. Find the correct interpretation(s) of the slope coefficient estimates. The elasticity of income on working experience is 13.43. O An additional year of working experience will increase the individual's income by 0.1343%. O An additional percentage increase of working experience will increase the individual's income by 0.1343%. O An additional year of working experience will increase the individual's income by 13.43%.
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