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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