One of the main reasons for using a polynomial OLS model is:
A) In order to estimate non-linear relationships.
B) In order to estimate linear relationships.
C) In order to account for measurement error.
D) In order to estimate a model where we suspect there is a measurement error in both the independent and dependent variables.

Question

Quizplus · Accepted Answer

One of the main reasons for using a polynomial OLS model is to estimate non-linear relationships between the independent and dependent variables. A linear OLS model can only estimate linear relationships, while a polynomial OLS model can estimate non-linear relationships by allowing for curvature in the relationship between the variables.

One of the Main Reasons for Using a Polynomial OLS