Question: In Problem 4.11, the R-squared from estimating the model log(salary) = (0 + (1logi (sales) + (2 log(mktval) + (3 profmarg + (4 ceoten +

In Problem 4.11, the R-squared from estimating the model
log(salary) = (0 + (1logi (sales) + (2 log(mktval) + (3 profmarg
+ (4 ceoten + (5 fomten + u,
Using the data in CEOSAL2.RAW, 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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