Consider a situation where Y is related to X in the following manner: $Y _ { i } = \beta _ { 0 } \times X _ { i } ^ { \beta _ { 1 } } \times e ^ { u _ { i } }$
Draw the deterministic part of the above function. Next add, in the same graph, a hypothetical Y, X scatterplot of the actual observations. Assume that you have misspecified the functional form of the regression function and estimated the relationship

between Y and X using a linear regression function. Add this linear regression function to your graph. Separately, show what the plot of the residuals against the X variable in your regression would look like.

Question

Consider a situation where  Y  is related to  X  in the following manner: $Y _ { i } = \beta _ { 0 } \times X _ { i } ^ { \beta _ { 1 } } \times e ^ { u _ { i } }$
Draw the deterministic part of the above function. Next add, in the same graph, a hypothetical Y, X scatterplot of the actual observations. Assume that you have misspecified the functional form of the regression function and estimated the relationship

between  Y  and  X  using a linear regression function. Add this linear regression function to your graph. Separately, show what the plot of the residuals against the  X  variable in your regression would look like.

Quizplus · Accepted Answer

The Answer of Consider a situation where  Y  is related to  X  in the following manner: $Y _ { i } = \beta _ { 0 } \times X _ { i } ^ { \beta _ { 1 } } \times e ^ { u _ { i } }$
Draw the deterministic part of the above function. Next add, in the same graph, a hypothetical Y, X scatterplot of the actual observations. Assume that you have misspecified the functional form of the regression function and estimated the relationship

between  Y  and  X  using a linear regression function. Add this linear regression function to your graph. Separately, show what the plot of the residuals against the  X  variable in your regression would look like.

Consider a Situation Where Y Is Related to Yi=β0×Xiβ1×euiY _ { i } = \beta _ { 0 } \times X _ { i } ^ { \beta _ { 1 } } \times e ^ { u _ { i } }Yi​=β0​×Xiβ1​​×eui​

Consider a Situation Where Y Is Related to $Y _ { i } = \beta _ { 0 } \times X _ { i } ^ { \beta _ { 1 } } \times e ^ { u _ { i } }$