Dear community,
I have a question regarding the interpretation of the size of a coefficient.
e.g. I have a variable in my data called Equity, it measures the ratio of equity/total assets.
The dependent variable in my data set is fragility which is also measured as a ratio.
The coefficient is for equity is -0.713 in one of the models and is statistically significant
So I conclude that a 1% increase in equity decreases fragility by 0.713%.
The standard deviation of equity is 6.1%.
Would it be correct to say that fragility decreasing by 0.713 is a relatively small change as the standard deviation of equity is 6.1%?
Kind regards,
Koen
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