Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › IIT JAM › IIT JAM 2026 › Q12
2 marks, −0.667Econometrics › Dummy variables and functional forms › Log, quadratic and other functional formsModerateabout 2 min

IIT JAM 2026 Question 12: Dummy variables and functional forms

Let YtY_tYt​ be the value of YYY in year ttt. The natural logarithmic value of YtY_tYt​ is regressed on ttt. A simple linear regression yields the statistically significant estimates of intercept and slope coefficient as 12 and 0.1512, respectively. The calculated compound annual growth rate of YYY is

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

Let Yₜ be the value of Y in year t. The natural logarithmic value of Yₜ is regressed on t. A simple linear regression yields the statistically significant estimates of intercept and slope coefficient as 12 and 0.1512, respectively. The calculated compound annual growth rate of Y is (A) 15.12% (B) 1.16% (C) 16.32% (D) 116%

Also written as: Let Y_t be the value of Y in year t. The natural logarithmic value of Y_t is regressed on t. A simple linear regression yields the statistically significant estimates of intercept and slope coefficient as 12 and 0.1512, respectively. The calculated compound annual growth rate of Y is

Dummy variables and functional forms has come up 20 times in 6 exams since 2011.

What this question tests

This question is on Log, quadratic and other functional forms, part of Dummy variables and functional forms in Econometrics.

Choosing and interpreting log-log, semi-log, quadratic and reciprocal specifications.

TestStop has 8 past-paper questions on this subtopic.

Take this paper as a timed mockMore on Log, quadratic and other functional forms

Similar questions from other papers

  • GATE 2026 · Q52The estimated energy demand is given in the Equation below, where, ŷₜ is the estimated value of the log of energy demand at time t. The numbers in the parentheses are…
  • GATE 2024 · Q51The following table provides different statistical model specifications along with the elasticity of yₜ with respect to xₜ. Which one of the following options is…
  • UGC-NET 2024 · Q79If a variable has 'm' categories, we can run the regression using:
  • UGC-NET 2024 · Q29ANCOVA models include regressors that are:
  • UGC-NET 2023 · Q9In the model ln Y_i = a + B X_i + u_i, where ln is the natural log, the elasticity of Y with respect to X is given by:

Question from the IIT JAM 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.