Questions
Single choice
Which test is specifically designed as a general test for functional form misspecification in a regression model?
Options
A.Hausman Test.
B.Ramsey RESET Test.
C.Breusch-Godfrey Test.
D.Breusch-Pagan Test.
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
In approaching this question, I first recall the purpose of each listed test within regression diagnostics.
Option 1: Hausman Test. This test is used to decide between fixed effects and random effects models (or to test endogeneity in some contexts). It is no......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
The quadratic version of the regression showing the effect of advertising on quantity in the textbook is q = 3.95 + 1.2A – 0.04A2. For this regression, what evidence would you consider in deciding whether the quadratic specification is preferable to the linear specification?
Which one of the following is NOT one of the 4 specification criteria for determining whether a given variable belongs in a regression equation?
Another problem is that the European Union has expanded, and the model you used did not account for the expansion of the European Union during the year. This contributed to which problem?
Please use Stata to replicate Ch9 Example 9.2 on pp.297-298. Below is model (9.4): price=β0+β1lotsize+β2sqrft+β3bdrms+u Based on your estimation for model (9.4), answer the following questions: (1) What is the null hypothesis of RESET test? (2) What is the p-value for the RESET statistic? (3) Do you reject the null hypothesis at the 5% significance level? (4) Is there evidence of functional form misspecification in (9.4)?
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!