When Should a Researcher Consider Transforming the Explanatory Variable in the Simple

question 8

Multiple Choice

When should a researcher consider transforming the explanatory variable in the simple linear regression model?

• A)to estimate a coefficient on the dependent variable that matches economic theory
• B)to allow non-constant marginal effects
• C)to reduce variance in the dependent variable
• D)to reduce (Note: the "hat" should be over the whole expression,but I can't accomplish that in my software right now)

---

Definitions:

Pyrene

A polycyclic aromatic hydrocarbon (PAH) consisting of four fused benzene rings, resulting in a flat aromatic system.

Huckel Rule

A rule that helps predict the aromaticity of planar rings based on the count of pi electrons, stating that aromatic compounds must have 4n+2 pi electrons.

Aromatic

Refers to molecules that contain one or more planar rings of atoms with delocalized pi electron systems, typically associated with increased stability.

Antiaromatic

Compounds that have a cyclic, planar arrangement of atoms with 4n electrons that destabilize the molecule.