Choose one that is not correct. ('ln' is natural log and uiui is the stochastic disturbance term.)

A population regression function (PRF) E(YXi)=1+2(1Xi)E(YXi)=1+2(Xi1) is not linear in the variables but is linear in the parameters.

A model Yi=1+2Xi+3Xi2+uiYi=1+2Xi+3Xi2+ui is not linear in the variables but is linear in the parameters.

A model Yi=e1+2Xi+uiYi=e1+2Xi+ui can be a linear regression model by taking the natural log on both sides.

A model lnYi=1+2lnXi+uilnYi=1+2lnXi+ui is a linear regression model.

A model Yi=1+23Xi+uiYi=1+23Xi+ui is a linear regression model.

7

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