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MMLU / Which one of the following would be a plausible response to a finding of…

Problem

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question

Which one of the following would be a plausible response to a finding of residual non-normality?

choices

  1. Use a logarithmic functional form instead of a linear one
  2. Add lags of the variables on the right hand side of the regression model
  3. Estimate the model in first differenced form
  4. Remove any large outliers from the data.

subject

econometrics

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