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10.What is second order sample autocorrelation?a.)correlation between a mean and the second moment of the sample distribution
b.)a test statistic distributed N(0,)c.)correlation between observations that are two time periods apartd.)correlation between the dependent variable and a squared explanatory variableAns:cLevel:EasySection:9.311.When using the LM test for serial correlation,what is the null hypothesis?Level:ModerateSection:9.412.When performing a LM test for serial correlation,how is the test statistic distributed when the null hypothesis is true?Level:ModerateSection:9.413.When a lagged dependent variable is included as a regressor,we must use a weaker form of assumption TSMR2 that allows the error term to be correlated with future values of explanatory variables,but not present or past values.What implications does this weaker assumption have for our regressors?
14.What are the consequences of ignoring or failing to recognize serial correlation?a.)biased,but consistentb.)unbiased,but no longer BLUEc.)unbiased,but no longer lineard.)biased,but with minimum varianceAns:bLevel:ModerateSection:9.515.Which of the following is NOT true of Newey-West standard errors?Level:ModerateSection:9.516.Which of the following is NOT a reason nonlinear least squares is used to estimate an AR(1)model?Level:ModerateSection:9.5