Consider the Following Regression Equation

question 22

Multiple Choice

Consider the following regression equation: . Which of the following indicates a functional form misspecification in E(y|x) ?

• A)Ordinary Least Squares estimates equal Weighted Least Squares estimates.
• B)Ordinary Least Squares estimates exceed Weighted Least Squares estimates by a small magnitude.
• C)Weighted Least Squares estimates exceed Ordinary Least Squares estimates by a small magnitude.
• D)Ordinary Least Square estimates are positive while Weighted Least Squares estimates are negative.

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Definitions:

Response Variable

In statistics and modeling, the variable that is the outcome of a study or experiment and is influenced or predicted by the predictor variables.

Marital Status

A legally defined relationship status of an individual, typically categorized as single, married, divorced, widowed, or separated, often affecting legal rights and social benefits.

Level Of Happiness

An individual's personal assessment or measurement of their overall state of well-being and contentment.

Correlation Table

A table displaying correlation coefficients between sets of variables, showing how closely related the variables are.