Exam 6: Multiple Regression Analysis: Further Issues

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In the following equation, gdp refers to gross domestic product, and FDI refers to foreign direct investment. log(gdp) = 2.65 + 0.527log(bankcredit) + 0.222FDI (0)13) (0.022) (0.017) ​ Which of the following statements is then true?

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If we use If we use   to estimate   ​, then the residual for predicting yi is: to estimate If we use   to estimate   ​, then the residual for predicting yi is: ​, then the residual for predicting yi is:

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One popular measure to describe the relationship between the dependent variable y and each explanatory variable is the:

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A change in the unit of measurement of the dependent variable in a model does not lead to a change in:

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To make predictions of logarithmic dependent variables, they first have to be converted to their level forms.

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