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Indicate Whether or Not You Can Linearize the Regression Functions eβ0+β1Xi+ui{ } _ { e } \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i }

Question 47

Essay

Indicate whether or not you can linearize the regression functions below so that OLS estimation methods can be applied:
(a)Yi = eβ0+β1Xi+ui{ } _ { e } \beta _ { 0 } + \beta _ { 1 } X _ { i } + u _ { i } (b)Yi = β1\beta _ { 1 } X1iβ1X _ { 1 i } ^ { \beta _ { 1 } } X2iβ2X _ { 2 i } ^ { \beta _ { 2 } } + ui

Correct Answer:

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(a)The function can be lineari...

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