Interpretation OLS coefficient

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stefanp
Posts: 53
Joined: Wed Sep 30, 2015 12:24 am

Interpretation OLS coefficient

Postby stefanp » Tue Aug 28, 2018 8:43 am

I use a model in which the (only) explanatory variable is a proportion. E.g. something like:

y = c + \beta_1 * x

Now suppose x_1= 0.1 and \beta_1= 0.01. Does this imply, if x_1 was 1.1, y_1 would increase by 0.01?

startz
Non-normality and collinearity are NOT problems!
Posts: 3379
Joined: Wed Sep 17, 2008 2:25 pm

Re: Interpretation OLS coefficient

Postby startz » Tue Aug 28, 2018 9:12 am

Yes.


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