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When Should a Researcher Consider Transforming the Explanatory Variable in the Simple

Question 8

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When should a researcher consider transforming the explanatory variable in the simple linear regression model?


A) to estimate a coefficient on the dependent variable that matches economic theory
B) to allow non-constant marginal effects
C) to reduce variance in the dependent variable
D) to reduce When should a researcher consider transforming the explanatory variable in the simple linear regression model? A) to estimate a coefficient on the dependent variable that matches economic theory B) to allow non-constant marginal effects C) to reduce variance in the dependent variable D) to reduce   (Note: the  hat  should be over the whole expression,but I can't accomplish that in my software right now) (Note: the "hat" should be over the whole expression,but I can't accomplish that in my software right now)

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