When Using a Multiplicative Power Function (Y = a X₁^b1

question 9

Multiple Choice

When using a multiplicative power function (Y = a X₁^b1 X₂^b2 X₃^b3) to represent an economic relationship,estimates of the parameters (a,and the b's) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship.

• A)semilogarithmic
• B)double-logarithmic
• C)reciprocal
• D)polynomial
• E)cubic

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