Question #28
Reading: Reading 1 Multiple Regression
PDF File: Reading 1 Multiple Regression.pdf
Page: 12
Status: Unattempted
Correct Answer: B
Question
A multiple regression model has included independent variables that are not linearly related to the dependent variable. The model is most likely misspecified due to:
Answer Choices:
A. incorrect data pooling
B. incorrect variable form
C. incorrect variable scaling
Explanation
Incorrect variable form misspecification occurs if the relationship between dependent and
independent variables is nonlinear.