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Business, 26.11.2019 04:31 Milan1025

In problem 11 in chapter 4, the r-squared from estimating the model log(salary) = β0 + β1 log(sales) + β2 log(mktval) + β3profmarg+ β4ceoten + β5comten + u, using the data in ceosal2.csv, was r2 = .353 (n = 177). when ceoten2 and comten2 are added, r2 = .375. is there evidence of functional form misspecification in this model?

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In problem 11 in chapter 4, the r-squared from estimating the model log(salary) = β0 + β1 log(sales)...

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