1.3 THE METHODOLOGY OF ECONOMETRICS o Procedures of econometrics analysis 6. Checking for Model Adequacy: Model Specification Testing (1) Multiple linear regression model Simple/Two-variable linear regression model: one explanatory variable Multiple linear regression model: several /multiple explanatory variables (2) B1+B2X2;+B3X3+ C USLllniaucu I CivIl llne b1+b21.3 THE METHODOLOGY OF ECONOMETRICS Procedures of econometrics analysis 6. Checking for Model Adequacy: Model Specification Testing （1）Multiple linear regression model Simple/Two-variable linear regression model: one explanatory variable Multiple linear regression model: several/multiple explanatory variables. （2）The estimated regression line: Yi = B1 + B2 X2i + B3 X3i + u Yi b1 b2 X2i b3 X3i ˆ = + +