Kizspy | Question: 43
(Choose 1 answer)
Consider the following regression model: log(y) = β_0 + β_1x_1 + β_2 x_1^2+ β_3 x_3 + β_1 This model will suffer from functional form misspecification if
A. ẞ_0 is omitted from the model
B. u is heteroskedastic
C. x_1^2 is omitted from the model
D. x_3 is a binary variable
