Refer to Example 4.5 (Table 4-6) about education, GDP, and population for 38 countries.
a. Estimate a linear (LIV) model for the data. What are the resulting equation and relevant output values (i.e., F statistic, t values, and R2)?
b. Now attempt to estimate a log-linear model (where both of the independent variables are also in the natural log format).
c. With the log-linear model, what does the coefficient of the GDP variable indicate about education? What about the population variable?
d. Which model is more appropriate?