An additive error term is included in the transformed


An analysis of the effect of advertising on consumer price sensitivity is carried out. The log of the quantity purchased (ln q), the dependent variable, is run against the log of an advertising-related variable called RP (the log is variable ln RP ). An additive error term is included in the transformed regression. What assumptions about the model relating q and RP are implied by the transformation?

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Physics: An additive error term is included in the transformed
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