I have a simple linear regression model, where the independent variable is defined in percentages (%) while the dependent variable is in percentage points (difference between two yoy %-rates). How would I interpret the regression coefficient (an increase of 1 percentage point in x leads to an increase of ß percentage points of y?)?
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1$\begingroup$ Could you please edit your post to make clearer which is your independent and which your dependent variable? $\endgroup$– JohnKCommented Jun 13, 2015 at 20:20
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$\begingroup$ My independant variable is the forecast error in percentages (%) of oil prices (that is, the percentage difference of the realised value relative to the predicted value), my dependant variable is the difference in percentage points of the annual rate of import prices minus the annual rate of predicted import prices. Thanks a lot in advance. $\endgroup$– tinyaCommented Jun 14, 2015 at 7:31
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$\begingroup$ Spelling: independent, dependent when both words are adjectives. (I realise English may not be your first language.) $\endgroup$– Nick CoxCommented Jun 14, 2015 at 13:24
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"A one percentage point increase in the forecast error of oil prices is associated with a beta percentage point change in the difference in percentage points of the annual rate of import prices minus the annual rate of predicted import prices."
