Practice_Questions_Chapter6

biased downward and have smaller standard errors b

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Unformatted text preview: Information Criterion (AIC) c.) Bayesian Information Criterion (BIC) d.) Jarque- Bera Test Ans: d Section: 6.3 12. When are R2 and adjusted R2 equal? a.) when the model is correctly specified b.) when K = 1 c.) when the error terms are normally distributed d.) when an unrestricted model is estimated Ans: b Section: 6.3 13. You estimate 4 different specifications of an econometric model by adding a variable each time and get the following results 2 2 R adj R AIC Model A 0.3458 0.3285 22.56 Model B 0.3689 0.3394 22.37 Model C 0.4256 0.3916 21.21 Model D 0.4299 0.3...
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