Question - reciprocal + plotting the estimated model
Hi there.
Im estimating a modell - y regressand - x e o u regressors.
When ploting y against each of the indep, the y-u plot suggests a reciprocal relationship. The rest more or less linear relationships.
Should I include the reciprocal relationship? And do I do that by genr ru=(1/u) , and estimate with ru instad of u?
Im also wondering how to plot the estimated regression line against the raw-plot in Shazam. Could someone please elaborate?
Thank you in advance for helping out!