Question #4
Reading: Reading 1 Multiple Regression
PDF File: Reading 1 Multiple Regression.pdf
Page: 2
Status: Unattempted
Correct Answer: A
Question
Which of the following is least likely to result in misspecification of a regression model?
Answer Choices:
A. Inappropriate variable form
B. Transforming a variable
C. Omission of an important independent variable
Explanation
The four types of model specification errors are: omission of an important independent
variable, inappropriate variable form, inappropriate variable scaling and data improperly
pooled. Transforming an independent variable is usually done to rectify inappropriate
variable scaling.