If You Run a LM Test for Heteroskedasiticity and Reject $\sigma$

question 5

Multiple Choice

If you run a LM test for heteroskedasiticity and reject the null hypothesis,what should you conclude?

• A)at least one coefficients in the auxiliary regression is significantly different from zero,the assumption var(y_i. )= var(e_i)= \(\sigma\)² is unlikely to be true
• B)there is no evidence of heteroskedasticity,the assumption var(y_i. )= var(e_i)= \(\sigma\)² is most likely true
• C)there is heteroskedasticity present and it is correctly specified as tested
• D)there is heteroskedasticity,but it is not linear in the explanatory variables

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Definitions:

Blood Reaction

An immunologic response by the body to transfused blood products, which might include fever, chills, and potentially life-threatening conditions.

Preadministration Laboratory

Tests and checks performed before the administration of a medical treatment or procedure to ensure patient safety.

Blood Product

Any therapeutic substance derived from human blood, including red cells, platelets, clotting factors, and plasma, used in transfusions.

Y Tubing

A type of medical tubing split into two branches in a Y shape, commonly used for simultaneous administration of fluids or drugs, or for blood transfusions.