Which of the following statements is true?
A) In large samples there are not many discrepancies between the outcomes of the F test and the LM test.
B) Degrees of freedom of the unrestricted model are necessary for using the LM test.
C) The LM test can be used to test hypotheses with single restrictions only and provides inefficient results for multiple restrictions.
D) The LM statistic is derived on the basis of the normality assumption.
Correct Answer:
Verified
Q1: If OLS estimators satisfy asymptotic normality, it
Q2: An auxiliary regression refers to a regression
Q3: In a regression model, if variance of
Q4: If the model Q5: A useful rule of thumb is that Q7: In the multiple regression model Q8: Which of the following statements is true Q9: The Cauchy-Schwartz inequality implies that the asymptotic Q10: The LM statistic follows a: Q11: The n-R-squared statistic also refers to the:
A)t distribution.
B)f distribution.
C)
A)F
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