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MMLU / Which one of the following is NOT an example of mis-specification of functional…

Problem

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question

Which one of the following is NOT an example of mis-specification of functional form?

choices

  1. Using a linear specification when y scales as a function of the squares of x
  2. Using a linear specification when a double-logarithmic model would be more appropriate
  3. Modelling y as a function of x when in fact it scales as a function of 1/x
  4. Excluding a relevant variable from a linear regression model

subject

econometrics

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