How to interpret regression slope when variable is in proportion and percentage

[rog_kad]

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:

• 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%.

But the issue is can I substitute proportion as % directly because the question is in terms of proportion?

Also, say I want to convert this proportion to percentage now, then what changes do I need to make?

 

[Deleted member 4993]

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:

• 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%.

But the issue is can I substitute proportion as % directly because the question is in terms of proportion?

Also, say I want to convert this proportion to percentage now, then what changes do I need to make?

Is this a problem from class-homework - or a real-life problem? How did you come to know this problem?

Have you used the equation before to calculate income or expenditure? If yes, can you share some examples?