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Derivatives

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New Contributor
Posts: 2

Derivatives

I Am working on a multiple linear regression project for my econometrics class and I was asked by my professor to find any difference in the coefficients using different models (log). My professor wants to make up a mathematical formula for a derivative where the dependent variable is differentiable with respect to one of the independent variables using the means for each model. Any hints about how can I tackle this question?

thanks

SAS Super FREQ
Posts: 3,221

Re: Derivatives

If you assume that

Y = b0 + b1*x1 + b2*x2 + ... + bn*xn + epsilon

then the mean model is just

Y = b0 + b1*x1 + b2*x2 + ... + bn*xn

Then

dY/dx1 = b1

dY/dx2 = b2

...

dY/dxn = bn

In other words, the regression coefficients ARE the partial derivatives of Y w.r.t. the independent variables.

New Contributor
Posts: 2

Re: Derivatives

Thanks 

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