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Consider a researcher who is trying to analyze the relationship between house price, Pricei , and the size of the house Sizei . Using survey
Consider a researcher who is trying to analyze the relationship between house price, Pricei , and the size of the house Sizei . Using survey data, the researcher wants to estimate the following model: Pricei = 1 + 2Sizei + ui . In this specific case, why does the disturbance term exist? Please give 2 reasons with explanations.
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