How Can We Deal with the Breach of the Assumption

question 4

Multiple Choice

How can we deal with the breach of the assumption about linearity?

• A) Include a squared term
• B) Include an interaction term
• C) Use robust regression
• D) Use the margins command

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Definitions:

Significance Level

The threshold used in hypothesis testing to determine whether to reject the null hypothesis, commonly denoted as alpha (α).

Power of the Test

The probability that a statistical test will correctly reject a false null hypothesis, essentially the test's ability to detect an effect when there is one.