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Re: st: How to Interpret Coefficients when DV is square-rooted

From   Nick Cox <>
To   "" <>
Subject   Re: st: How to Interpret Coefficients when DV is square-rooted
Date   Wed, 3 Aug 2011 08:10:31 +0100

-glm- with square root link may help.


On 2 Aug 2011, at 21:48, "" < > wrote:

Dear Stata Listers
I am estimating turnover ratio using OLS.  I found heteroskedasticity,
and as recommended in the textbook (Wooldridge, 2006)  I transformed
turnover rates using square root.
After transformation, heteroskedsticity problem is solved.  However,
the next problem occurs: how do I interpret the beta coefficients for
each independent variable?

If I square both sides, the equation in the right hand side becomes messy.

There are multiple recommendations to solve a heteroskedsticity
problem (such as using weighted least squares, or robust standard
error and so on), but I am now curious how to interpret coefficients
of independent variables when dependent variable is square rooted

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