Question: C9.1 (i) Apply RESET from equation (9.3) to the model estimated in Computer Exercise C7.5. Is there evidence of functional form misspecification in the equation?
C9.1 (i) Apply RESET from equation (9.3) to the model estimated in Computer Exercise C7.5. Is there evidence of functional form misspecification in the equation? (ii) Compute a heteroskedasticity-robust form of RESET. Does your conclusion from part (i) change?
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