Question: Exercise 2: Functional Forms Suppose you estimate alternative specifications as given below using data for 16 products: A linear relationship: Y i ^ = 93432

Exercise 2: Functional Forms Suppose you estimate alternative specifications as given below using data for 16 products: A linear relationship: Y i ^ = 93432 2615 X i A linear-log relationship: Y i ^ = 179761 47311 log ( X ) A log-log relationship: log ( Y i ) ^ = 17.3 2.7 log ( X i ) Note: In economics, by convention, log() always refers to the natural log, ln()

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