## Exam 1

1. #### Question

Consider the following regression results:
```Call:
lm(formula = log(y) ~ log(x), data = d)
Residuals:
Min      1Q  Median      3Q     Max
-6.6119 -1.4477  0.1735  1.5365  4.8160
Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept)   0.1264     0.2520   0.501    0.618
log(x)        0.2870     0.2279   1.259    0.212
Residual standard error: 2.251 on 79 degrees of freedom
Multiple R-squared:  0.01967,	Adjusted R-squared:  0.007263
F-statistic: 1.585 on 1 and 79 DF,  p-value: 0.2117
```
Describe how the response y depends on the regressor x.

#### Solution

The presented results describe a log-log regression.
The mean of the response y increases with increasing x.
If x increases by $1$ percent then a change of y by about $0.29$ percent can be expected.
However, the effect of x is not significant at the $5$ percent level.