Introductory Econometrics 4th Edition by Jeffrey Wooldridge

تمرين 15

In Problem, the R-squared from estimating the model log(salary) = Q + 1 log(sales) + 2 log(mktval) + 3 profmarg + 4 ceoten + 5 comten + u, using the data in CEOSAL2.RAW, was R 2 =.353 (n = 177). When ceoten2 and comten2 are added, R 2 =.375. Is there evidence of functional form misspecification in this model