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Question 3 Test score 780 Linear regression 760 Linear-log regression 740 720 Cubic regression 700 680 660 640 620 0 10 20 30 40 50

Question 3

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Test score 780 Linear regression 760 Linear-log regression 740 720 Cubic regression 700 680 660 640 620 0 10 20 30 40 50 District income (thousands of dollars)QUESTION 3 The R-code below is supposed to generate a graph similar to Figure 9.1 of Stock and Watson (the left graph on page 19 of Lecture Slides 7) with the three estimated regression functions. However, when you implement it, you find that the resulting graph has a problem. fig2

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