If You Perform a Hausman Test on a Random Effects

question 23

Multiple Choice

If you perform a Hausman test on a random effects model and have a test statistic that exceeds your critical value,what should you conclude?

• A)all of the regressors in the RE model are exogenous
• B)none of the common RE and FE coefficients are significantly different
• C)at least one of the coefficients is significantly different from zero
• D)at least one of the regressors in the RE model is endogenous

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