Question
We run the following regression, Y = 0 + 1 log(X) + 2 T + u, and we found ^ 1 = 0.89. Suppose that
We run the following regression, Y = 0 + 1 log(X) + 2 T + u, and we found ^ 1 = 0.89. Suppose that for some value of the variable T, and X = 0.24, the predicted value of the dependent variable is Y ^ = 0.39. Suppose now that X changes to 0.64 (but T does not change). Calculate the new predicted value Y ^ .
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
