You regress the log of house prices on pollution and obtain the following results:
ln(house prices_hat) = 5 + 0.03*Pollution
This means that a one unit increase in pollution is associated with a.
A. ... 3 percentage point increase in house prices.
B. ... 0.30 percentage point increase in house prices.
C. ... 30 percent increase in house prices.
D. ... 3 percent increase in house prices.
Answer: D. ... 3 percent increase in house prices.