Tuesday, April 28, 2009

Question on regression

Hi Professor,
On the made up regression study page, how would you interpret the coefficients of the table explaining sex ratios in China? Also why would you take the natural log or square an independent variable in a regression analysis?
A Student

Either ln or sq. would be ways to turn what is a non-linear relationship into something that can be estimated as a linear relationship. So a parabola can be expressed as
y = a + bx + cx^2 for example.
Explaining sex ratios in China- the coefficient estimated for "distance to town" says that the farther from town the higher the male-female ratio (i.e. more men relative to women in the countryside). The Pop ethnic Chines says that Ethnic Chinese have higher ratio of men to women compared with non-Chinese ethnic groups.
Does that help?


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