Which of the Following Statements Are True About Parameter Stability

question 27

Multiple Choice

Which of the following statements are true about parameter stability tests?
(I) Parameter stability tests test the assumption that the estimated parameters of a model are constant for the entire sample
(II) Chow test and predictive failure tests are two types of parameter stability tests
(III) Backward and forward predictive failure tests are two types of parameter stability tests
(IV) Parameter stability tests examine violations of the classical linear regression model assumptions

• A) I only
• B) I and II only
• C) I, II and III only
• D) I, II, III and IV

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