Question #58

Reading: Reading 1 Multiple Regression

PDF File: Reading 1 Multiple Regression.pdf

Page: 27

Status: Unattempted

Correct Answer: A

Part of Context Group: Q58-60 First in Group
Shared Context
- Williams proceeds to test the hypothesis that none of the independent variables has significant explanatory power. Using the joint F-test for the significance of all slope coefficients, at a 5% level of significance: A) none of the independent variables has explanatory power. B) all of the independent variables have explanatory power. C) at least one of the independent variables has explanatory power.
Question
With respect to testing the validity of the model's results, Williams may wish to perform:
Answer Choices:
A. both a Breusch-Godfrey test and a Breusch-Pagan test
B. a Breusch-Pagan test, but not Breusch-Godfrey
C. a Breusch-Godfrey test, but not a Breusch-Pagan test
Explanation
Since the model utilized is not an autoregressive time series, a test for serial correlation is appropriate so the Breusch-Godfrey test would be used. The Breusch-Pagan test for heteroskedasticity would also be a good idea.
Actions
Practice Flashcards