Provide explanation and justification on the following:  a. How to select the different functional forms?  b. Discuss the TWO (2) approaches to determine whether the rejection or non-rejection of the null hypothesis.  c. What are the possible diagnostic problems?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.4: Multiple Regression Models
Problem 15P: Stock market analysts are continually looking for reliable predictors of stock prices. Consider the...
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Provide explanation and justification on the following: 
a. How to select the different functional forms? 
b. Discuss the TWO (2) approaches to determine whether the rejection or non-rejection of the null hypothesis. 
c. What are the possible diagnostic problems?

d. Discuss the solution to overcome TWO (2) diagnostic problems? 
e. In terms of econometric perspective, what are the assumptions or elements that 
you need to consider in developing the model for estimation. 

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