If You Reject the Null Hypothesis When Performing a Hausman

question 12

Multiple Choice

If you reject the null hypothesis when performing a Hausman test,what should you conclude?

• A)at least one of the explanatory variables is endogenous
• B)there are no endogenous variables
• C)the 2SLS estimation has corrected the endogeneity in the initial model
• D)the 2SLS second stage equation still has endogenous variables

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Definitions:

Mental Impairment

A condition that affects a person's thinking, feeling, mood, or ability to relate to others, significantly affecting daily functioning.

Persuasion

The act of convincing someone to do or believe something through reasoning or argument.

Undue Influence

Manipulation or pressure exerted over another person, undermining their free will and leading to an unfair agreement or decision.

Liable

Being legally responsible or obligated to compensate for harm caused by one's actions or negligence.