I believe you have it. BUT, be careful to specify the units for B1, which are (y-units) per (x-units). If X-units is a 'unitless' index value (i. e., reportable as percent of something), then _carefully_ include the percent as the x-units. If the X-units are reported as a fraction, then it is truly a 'unitless dimension' and use it as such.
Clearly, you can't compute B1 with X's as indexes, then use B1 with the true units of X.
"Dimensional analysis" will save you almost every time. To understand this better, try an example with your own X's and Y's.
Jay
On Apr 23, 2010, at 4:24:55 PM, Rodrigo Briceño wrote:
> Dear ALL STAT listers. I am running an econometric model like Y=B0 + B1X, where X is the index of consumer prices (CPI) and Y is the dependent variable.
>
> My question is very simple. Is the interpretation of the coefficient B1 like this: if CPI changes 1 percentage point then the Y variable will change B1 units of Y.
>
> My doubt right now is how to interpret values when the explanatory values are indexes.
>
> Thanks
> --
>
> __________________________________________________________________
>
> *Rodrigo Briceño*
> Project Manager
> Sanigest Internacional
>
> +506 22-91-12-00 ext. 113 * Oficina* *Costa Rica*
> +506 22-32-08-30 *Fax
> *[log in to unmask] <mailto:[log in to unmask]>
> _www.sanigest.com_ <http://www.sanigest.com/>
>
> MSN: [log in to unmask] <mailto:[log in to unmask]>
> SKYPE: rbriceno1087
>
> _____________________
>
> This communication contains legal information which is privileged and confidential. It is for the exclusive use of the address and distribution, dissemination, copying or use by others is strictly prohibited. If you have received this communication by error, please delete the original message and e-mail us.
>
>
> Esta comunicación contiene información legal privilegiada y confidencial para el uso exclusivo del destinatario. La distribución, diseminación, copia u otro uso por terceras personas es estrictamente prohibida. Si usted ha recibido esta comunicación por error, le rogamos borrar el mensaje original y comunicárnoslo a esta misma dirección.
>
>
> You may leave the list at any time by sending the command
>
> SIGNOFF allstat
>
> to [log in to unmask], leaving the subject line blank.
Jay Warner
Principal Scientist
Warner Consulting, Inc.
4444 North Green Bay Road
Racine, WI 53404-1216
USA
Ph: 262.634.9100
Fax: 262.681.1133
email: [log in to unmask]
web: www.a2q.com
The A2Q Method (tm) -- What do you want to improve today?
You may leave the list at any time by sending the command
SIGNOFF allstat
to [log in to unmask], leaving the subject line blank.
|