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Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609 Exercise 13
Apply RESET from equation to the model estimated in Computer Exercise. Is there evidence of functional form misspecification in the equation
(ii) Compute a heteroskedasticity-robust form of RESET. Does your conclusion from part (i) change
y = 0 + 1 x 1 +… + k x k + 1
2 + 2 
3 +error.
In Problem 4.2, we added the return on the firm's stock, ros, to a model explaining CEO salary; ros turned out to be insignificant. Now, define a dummy variable, rosneg, which is equal to one if ros _ 0 and equal to zero if ros _ 0. Use CEOSAL1.RAW to estimate the model
Discuss the interpretation and statistical significance of
3.
(ii) Compute a heteroskedasticity-robust form of RESET. Does your conclusion from part (i) change
y = 0 + 1 x 1 +… + k x k + 1
2 + 2 3 +error.In Problem 4.2, we added the return on the firm's stock, ros, to a model explaining CEO salary; ros turned out to be insignificant. Now, define a dummy variable, rosneg, which is equal to one if ros _ 0 and equal to zero if ros _ 0. Use CEOSAL1.RAW to estimate the model
Discuss the interpretation and statistical significance of
3.Explanation
Verified
Verified
(i)
The model estimated in Computer Exer...
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
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