Logging an x-variable

Problem

In the model

\[y_i=β_1+β_2 \log{x_{i,2}} + β_3 \log{x_{i,3}} + ε_i\]

\(b_3=300\) . Select the best option:

1. E(y|x) increases by approximately 300 units when x3 increases by 1 unit
2. E(y|x) increases by approximately 3% when x3 increases by 1 unit
3. E(y|x) increases by approximately 3 units when x3 increases by 1%
4. E(y|x) increases by approximately 3% when x3 increases by 1%