If You Reject the Null Hypothesis When Performing a RESET

question 2

Multiple Choice

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

• A)at least one of the original coefficients is not equal to zero
• B)the original model is incorrectly specified and can be improved upon
• C)relevant variable are omitted and the coefficient estimates of included variables are biased
• D)an incorrect functional form was used

---

Definitions:

Suggested Retail Price

The price at which the manufacturer recommends a retailer sell a product for to consumers.

Merchandise

Goods that are bought and sold within a market or industry.

Collect Like Terms

The process in algebra of combining terms that have the same variables raised to the same power to simplify expressions or equations.

Collect Like Terms

The method in algebra which involves merging terms that possess identical variables elevated to the same exponent.