If You Perform a Hausman Test on a Random Effects

question 19

Multiple Choice

If you perform a Hausman test on a random effects model and have a test statistic that exceeds your critical value,which of the following is not correct?

• A)at least one of the regressors in the RE model is endogenous
• B)none of the common coefficient estimates in the RE model will be significantly different in the FE model
• C)FE may be the preferred estimation technique
• D)this model may be better estimated using the Hausman-Taylor estimator

Calculate bad debt expense using different estimation methods.

Execute journal entries for writing off uncollectible accounts, reinstating accounts, and recording bad debt expenses.

Compute the maturity value of promissory notes and understand how notes receivable and payable are accounted.

Recognize the operational use and financial reporting implications of interest-bearing and non-interest-bearing notes.

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Definitions:

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Explicit and overt actions or policies that unjustly distinguish and differentiate individuals or groups based on certain traits or characteristics.

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Relating to Spain or to Spanish-speaking countries, especially those of Latin America, or pertaining to people of this cultural background.

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A follower of Islam, a monotheistic Abrahamic religion based on the Quran.