As an example of impure serial correlation caused by an incorrect functional form, lets return to the equation for the percentage of putts made (Pi) as a function of the length of the putt in feet (Li) that we discussed originally in Exercise 3 in Chapter 1. The complete documentation of that equation is
a. Test Equation 9.32 for serial correlation using the DurbinWatson test at the 5-percent level.
b. Why might the linear functional form be inappropriate for this study? Explain your answer.
c. If we now reestimate Equation 9.32 using a double-log functional form, we obtain:
Test Equation 9.33 for serial correlation using the DurbinWatson test at the 5-percent level.
d. Compare Equations 9.32 and 9.33. Which equation do you prefer? Why?
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