Question

Maxim runs an OLS regression where age, specified as a single linear variable, is one of...

Maxim runs an OLS regression where age, specified as a single linear variable, is one of the independent variables and is measured in years. Moyosore runs a regression that is the same except that she measures age in decades. What is the difference between the estimates of the coefficient on age for these two researchers?

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Answer #1

Please refer to the following ​​​​​​ for your answer to this question. We have used the formula that the slope coefficient is equal to the covariance of the independent variable with the dependent variable divided by the variance of the independent variable. Based on the results shown in the images, we can conclude that if age is taken in decades (as in Moyosore's model), the coefficient is 10 times that when the age is taken in years (as in Maxim's model).

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