Next: 4.
Up: 3.
Previous: 3.2
Understand interpretations on the log scale, why log transforms result
in percentage change interpretations.
- Key facts: The log of a product is the sum of the logs.
for small
.
- Take a log (natural) regression.
-
- Increase x by
percent, how does ln(y) shift?
-
-
-
- How much did ln(y) shift?
-
.
-
.
-
.
-
.
-
.
- Finally: percentage change in y is
.
Next: 4.
Up: 3.
Previous: 3.2
Richard Waterman
1999-09-30