Suppose you run a regression of a farm\'s agricultural output (in metric tons) o

Question

Suppose you run a regression of a farm's agricultural output (in metric tons) on the average temperature (in Fahrenheit) and you obtain the following results: output = 325 + 5.3 tempi You are invited to present these results at a conference, but the attendees will not be accustomed to thinking about temperatures in degrees Fahrenheit. Use the OLS slope formula to determine what the estimated slope would be if you had instead regressed output on temperature in celsius (temp_c): 5 temp.c = (temp.f-32)

Explanation / Answer

Bascially we have to convert the Fahreheniet into Degree in the formula

So, output^ = 325 + 5.3*temp_f...1

temp.c = 5/9 (tempf-32)
(9/5)*temp.c +32 = temp.f

Subbing this value in 1..

output^ = 325 +5.3*(9/5)*(temp.c+32)

output^ = 325+5.3*(9/5)*32 + 5.3*(9/5)*temp.c

output^ = 630.28 + 9.54*temp.c

The new slope when we want everything in degrees is 9.54

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