To decide whether Yi = ?0 + ?1X + ui or ln(Yi) = ?0 + ?1X + ui fits the data better, you cannot consult the regression R2 because
A) ln(Y) may be negative for 0
C) the slope no longer indicates the effect of a unit change of X on Y in the log-linear model.
D) the regression R2 can be greater than one in the second model.
Answer: B) the TSS are not measured in the same units between the two models.
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Fluctuations in investment: a. account for almost all of the variability in gross domestic product (GDP) only during expansions. b. account for little of the variability in gross domestic product (GDP)
c. account for almost all of the variability in gross domestic product (GDP) only during recessions. d. are larger during expansions than during recessions. e. account for more of the variability in gross domestic product (GDP) than consumption.
Which of the following is not a necessary condition for price discrimination? a. The firm must be a price maker
b. The firm must be able to distinguish between customers. c. The firm must be able to prevent resale of a product between customers. d. The firm must be able to produce homogeneous products. e. The firm must have a downward-sloping demand curve.