Suppose you and a research partner are interested in studying the effects of height on salary. Your partner proposes using a simple OLS regression model to analyze the following population model: Bo + B1 height + u wage = where wage = annual salary height = height in inches The proposed model is The proposed model is 10. Functional forms involving logarithms The Graduate Record Exam (GRE) is an exam most students must take to apply to graduate schools. Suppose you are interested in studying the effects of time spent studying for the GRE on the score of the math section of the test. You propose the following model: log (score) = Bo + Bị study where score = score on the math section of the GRE study = time spent studying for the math section of the GRE, in hours Based on the functional form of your simple OLS model, your model would best be classified as a model. log-level Suppose you estimate the model using OLS, with the following results: level-log level-level log (score) = 10 + 0.003 study %3D log-log Given the functional form of your model, which of the following is true regarding the interpretation of B1? a) For a 1-hour increase in time spent studying, the predicted exam score rises by 0.3 points.
b) For a 1% increase in hours spent studying, the predicted exam score rises by 0.3%o.
c) For a 1-hour increase in time spent studying, the predicted exam score rises by 0.3%.
d) For a 1% increase in hours spent studying, the predicted exam score rises by 0.3 points.