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    Introduction to Econometrics Study Set 1
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    Exam 8: Nonlinear Regression Functions
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    In the Model Yi = β0 + β1X1 + β2X2
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In the Model Yi = β0 + β1X1 + β2X2

Question 23

Question 23

Multiple Choice

In the model Yi = β0 + β1X1 + β2X2 + β3(X1 × X2) + ui,the expected effect In the model Yi = β0 + β1X1 + β2X2 + β3(X1 × X2) + ui,the expected effect   is A) β1 + β3X2. B) β1. C) β1 + β3. D) β1 + β3X1. is


A) β1 + β3X2.
B) β1.
C) β1 + β3.
D) β1 + β3X1.

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