Question #69

Reading: Reading 1 Multiple Regression

PDF File: Reading 1 Multiple Regression.pdf

Page: 32

Status: Unattempted

Correct Answer: B

Part of Context Group: Q69-70 First in Group
Shared Context
- Which of the following tests is least likely to be used to detect autocorrelation? A) Durbin-Watson. B) Breusch-Godfrey. C) Breusch-Pagan.
Question
One of the most popular ways to correct heteroskedasticity is to:
Answer Choices:
A. improve the specification of the model
B. adjust the standard errors
Explanation
Using generalized least squares and calculating robust standard errors are possible remedies for heteroskedasticity. Improving specifications remedies serial correlation. The standard error cannot be adjusted, only the coefficient of the standard errors.
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