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Consider the Following Regression Equation

question 22

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


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