To Decide Whether $Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X + u _ { i } \text { or } \ln \left( Y _ { i } \right) = \beta _ { 0 } + \beta _ { 1 } X + u _ { i }$

question 40

Multiple Choice

To decide whether $Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X + u _ { i } \text { or } \ln \left( Y _ { i } \right) = \beta _ { 0 } + \beta _ { 1 } X + u _ { i }$
fits the data better, you cannot consult the regression R² because

• A) ln (Y) may be negative for 0<Y<1 .
• B) the TSS are not measured in the same units between the two models.
• C) the slope no longer indicates the effect of a unit change of X on Y in the log-linear model.
• D) the regression \(R ^ { 2 }\) can be greater than one in the second model.

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Definitions:

Abnormal Behavior

Actions or behaviors that deviate significantly from what is considered normal or typical.

Personal Distress

A negative emotional response individuals feel when witnessing others in distress, motivating them to alleviate both their own and others' suffering.

Function Normally

The ability of an organism, system, or mechanism to operate or perform within its expected parameters, without impairment or dysfunction.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual published by the American Psychiatric Association detailing criteria for diagnosing mental disorders.