Which of the following statements is correct? a. The F test for joint exclusion restrictions is a powerful tool for detecting misspecified functiona form. b. It can be difficult to pinpoint the precise reason that a functional form is misspecified. c. In many cases, using logarithms of certain variables and adding quadratics are sufficient for detecting many important nonlinear relationships in economics. d. All of the above.

Which of the following statements is correct? a. The F test for joint exclusion restrictions is a powerful tool for detecting misspecified functiona form. b. It can be difficult to pinpoint the precise reason that a functional form is misspecified. c. In many cases, using logarithms of certain variables and adding quadratics are sufficient for detecting many important nonlinear relationships in economics. d. All of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Economics
Which of the following statements is correct?
a. The F test for joint exclusion restrictions is a
powerful tool for detecting misspecified functional
form.
b. It can be difficult to pinpoint the precise reason
that a functional form is misspecified.
c. In many cases, using logarithms of certain
variables and adding quadratics are sufficient for
detecting many important nonlinear relationships
in economics.
d. All of the above.

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