You have estimated a linear regression model relating (Y) to (X). Your professor says, I think that

Question:

You have estimated a linear regression model relating \(Y\) to \(X\). Your professor says, "I think that the relationship between \(Y\) and \(X\) is nonlinear." Explain how you would test the adequacy of your linear regression.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

Question Posted: