Which of These Cannot Be Used to Test for Non-Linearity

question 6

Multiple Choice

Which of these cannot be used to test for non-linearity?

• A) Portmanteau tests
• B) White test
• C) Ramsey's RESET test
• D) The BDS test

---

Definitions:

Operating Activities

Activities that constitute the primary or main activities of a business, including sales, services, and day-to-day operations.

Merchandise Inventory

The total value of a retailer's or wholesaler's goods on hand at the end of an accounting period, available for sale to customers.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

Indirect Method

A method used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.