Consider the linear regression of Test Score on Income and the nonlinear regression in Equation (8.18). Would

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Consider the linear regression of Test Score on Income and the nonlinear regression in Equation (8.18). Would either of these regressions provide a reliable estimate of the effect of income on test scores? Would either of these regressions provide a reliable method for forecasting test scores? Explain.
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Introduction to Econometrics

ISBN: 978-0133595420

3rd edition

Authors: James H. Stock, Mark W. Watson

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