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

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Definitions:

Life Expectancy

The average number of years an individual is expected to live, based on statistical averages of age-specific death rates.

Wear-and-Tear Theory

A concept in aging that suggests the body deteriorates progressively due to accumulated damage from environmental factors.

Maximum Life Span

The longest period that members of a species can live under ideal circumstances.