A regression specification must include
A)the functional relationship between dependent and explanatory variables.
B)the estimated coefficients.
C)the estimated t-statistic.
D)All of the above.

Question

Quizplus · Accepted Answer

The functional relationship between the dependent and explanatory variables is a fundamental part of a regression specification, as it defines how changes in the explanatory variable(s) will impact the dependent variable. Estimated coefficients and t-statistics are important outputs of the regression analysis but they are not necessary components of the specification itself.

A Regression Specification Must Include