Question: 9.1 In Problem 4.11, the R-squared from estimating the model log(salary) = Blog(sales) + Blog(mktval) + B3profmarg + Baceoten + B-comten + u, are using
9.1 In Problem 4.11, the R-squared from estimating the model log(salary) = Blog(sales) + Blog(mktval) + B3profmarg + Baceoten + B-comten + u, are using the data in CEOSAL2.RAW, was R2 = .353 (n = 177). When ceoten? and comten an added, R2 = .375. Is there evidence of functional form misspecification in this model?
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