Answer to Question #285060 in Economics for Hase

Question #285060

4. Linearity is one assumption of classicalist in simple regression analysis. Identify which of the following satisfies this assumption. Discuss why?

a, LnY2=( +(1X1i +(2X2i +Ui

B, Y=( +(1/(1) X1i +(2X2i +Ui

C, Y=( +(1X21i +(2X2i +Ui

D, LnY=( +(1LnX1i +(2LnX2i +Ui

e. Yi=( +(2Xi + Ui

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