Unformatted text preview: 911
21.79 Which model appears to be correctly specified? a.)A b.)B c.)C d.)D Ans: C Section: 6.3 14. If you reject the null hypothesis when performing a RESET test, what should you conclude? a.) at least one of the original coefficients is not equal to zero b.) the original model is incorrectly specified and can be improved upon c.) relevant variable are omitted and the coefficient estimates of included variables are biased d.) an incorrect functional form was used Ans: b (the misspecification does not have to be an omitted variable) Section: 6.3 15. When collinear variables are included in an econometric model coefficient estimates are a.) biased downward and have smaller standard errors b.) biased upward and have larger standard errors c.) b...
View
Full
Document
This note was uploaded on 02/20/2013 for the course ECON 103 taught by Professor Sandrablack during the Fall '07 term at UCLA.
 Fall '07
 SandraBlack
 Econometrics

Click to edit the document details