Question #128
Reading: Reading 1 Multiple Regression
PDF File: Reading 1 Multiple Regression.pdf
Page: 62
Status: Unattempted
Correct Answer: B
Question
When pooling the samples over multiple economic environments in a multiple regression model, which of the following errors is most likely to occur?
Answer Choices:
A. Heteroskedasticity
B. Model misspecification
C. Multicollinearity
Explanation
When data are improperly pooled over multiple economic environments in a multiple
regression analysis, the model would be misspecified.