I have two equations:
expenditure = 10 + 20*income
where income is measured as a proportion between 0 and 0.7
ln(expenditure) = 3.5 + 1.2 * income Assumption: expenditure measures in thousand dollars
How can I interpret the slope here? My understanding:
Also, say I want to convert this proportion to percentage now, then what changes do I need to make?
expenditure = 10 + 20*income
where income is measured as a proportion between 0 and 0.7
ln(expenditure) = 3.5 + 1.2 * income Assumption: expenditure measures in thousand dollars
How can I interpret the slope here? My understanding:
- An increase in the proportion of income by 1 (100%) will lead to 20 thousand dollar increase in expenditure.
- Proportion difference in the expenditure = 1.2 thousand dollar when income differs by 100%.
Also, say I want to convert this proportion to percentage now, then what changes do I need to make?