When Using a Multiplicative Power Function (Y = a X₁^b1X₂^b2X₃^b3)to

question 26

Multiple Choice

When using a multiplicative power function (Y = a X₁^b1X₂^b2X₃^b3) to represent an economic relationship,estimates of the parameters (a,and the b's) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship.

• A) semilogarithmic
• B) double-logarithmic
• C) reciprocal
• D) polynomial
• E) cubic

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Definitions:

Dividends

Dividends are portions of a company's earnings decided by the board of directors to be distributed among shareholders, usually in the form of cash payments or shares.

Real Rate Of Return

The rate of return on an investment after adjusting for inflation, providing a clearer picture of the investment's true profitability.