Multiple Choice
Consider the following regression model: log(y) = β0+ β1x1+ β2x12 + β3x3+ u.This model will suffer from functional form misspecification if _____.
A) β0 is omitted from the model
B) u is heteroskedastic
C) x12 is omitted from the model
D) x3 is a binary variable
Correct Answer:
Verified
Correct Answer:
Verified
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