Suppose your data produces the regression result . Scale by multiplying observations by and do not scale . The new intercept and slope estimates will be
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4 marks, −1EconometricsLinear regression and OLSInterpreting slopes, intercepts and rescalingEasyabout 2 min
DSE 2018 Question 50: Linear regression and OLS
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Suppose your data produces the regression result y = 10 + 3x. Scale y by multiplying observations by 0.9 and do not scale x. The new intercept and slope estimates will be (A) 10 and 3 (B) 9 and 3 (C) 9 and 2.7 (D) 10 and 2.7
Linear regression and OLS has come up 74 times in 7 exams since 2008.
What this question tests
This question is on Interpreting slopes, intercepts and rescaling, part of Linear regression and OLS in Econometrics.
Reading a fitted coefficient, and what changes when variables are rescaled.
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