EViews.com

Hi,

In a model a regressed I used a dummy variable at the left-hand side to explain its presence. The explanatory variables at the right hand side are partly significant, but how do I interpret the coefficients.

For example: Y= b + 24.5 population + e

So one of the coefficients has a result of 0.245 for population. Is it possible to interpret it as: An increase of one unit of population causes an increase of 24.5% of the dummy variable. Or is it not possible and should it be interpreted differently. Or dummy variable is explained by population for 24.5% ?


Thank you in advance!

Google "linear probability model"

I'm not clear with your approach if your regresion setting is the linear one.
Conversely, if you are talking about a logistic regression a yes/no dependent variable makes sense. However, the interpretation of your results could be easier if you convert the dependent variable into an odds ratio.

Kind regards,
Carlo

Thanks everyone for your help!