Author Topic: A short question about Q2  (Read 737 times)

Shenxiong

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A short question about Q2
« on: February 23, 2017, 04:02:02 PM »
Hi!


   In terms of the interpretation, if the coefficients don't have economic interpretation, and in the sense that I cannot come up with a neat understanding of the intuitive meaning of them, will I still need to interpret them?


   Thank you!

Scott Onestak

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Re: A short question about Q2
« Reply #1 on: February 23, 2017, 07:44:30 PM »
Hey,


I'm uncertain what you mean when you say that the coefficients don't have an economic interpretation. 


I would point you towards notes 10 section 3 (Interpreting coefficients) to help.

Shenxiong

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Re: A short question about Q2
« Reply #2 on: February 23, 2017, 08:42:50 PM »


  Hi~
  In the section 3 of note 10, it mentioned that for b2 and b3, "there is no economic interpretation at all, in the sense that we cannot come up with a neat understanding of the intuitive meaning of" b2 and b3...
   

Scott Onestak

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Re: A short question about Q2
« Reply #3 on: February 23, 2017, 09:17:26 PM »
That section of the notes is just stating that there is no neat understanding of the variable terms as there are for other variables.  There isn't an extremely clean cut way to interpret the betas the same way as others you may be able to.


I am unable to say for certain whether you will or will not be able to understand the exact beta values, but you should certainly be able to explain in general what is happening and why that is the case - especially for an experience variable.

Shenxiong

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Re: A short question about Q2
« Reply #4 on: February 23, 2017, 09:33:41 PM »
Ok! I got your point.


Thank you!