*3.5.4 Ramsey rest test for the functional form*

Specification errors can be errors in the specification of the functional form that the equation should take in describing the relationship between the variable. If the F test statistic is greater than the F critical value, we reject the null hypothesis that the true specification is greater than the F critical value, hence reject the null hypothesis that the true specification is linear (which implies that the true specification is nonlinear). If we are unable to reject the null, then the results suggest that the true specification is linear and the equation passes the Ramsey Reset test (**Table 6**).

The probability values from the Ramsey rest test for the T and F statistics are greater than 0.05 level of significance, meaning that the estimated model is free from specification errors.

**Figure 3.** *Histogram normality test model I.*


#### **Table 6.**

*Ramsey rest test for the functional form test results.*

*Determinants of Economic Growth: An Empirical Evaluation of the Ugandan Economy DOI: http://dx.doi.org/10.5772/intechopen.100507*
