Assume That You Have Used the OLS Estimator in the Cointegrating

question 9

Multiple Choice

Assume that you have used the OLS estimator in the cointegrating regression and test the residual for a unit root using an ADF test.The resulting ADF test statistic has a

• A)normal distribution in large samples.
• B)non-normal distribution which require ADF critical values for inference.
• C)non-normal distribution which require EG-ADF critical values for inference.
• D)normal distribution when HAC standard errors are used.

---

Definitions:

Sales Promotion

Marketing activities aimed at increasing consumer demand and stimulating sales for a limited period.

Crest Toothpaste

A brand of toothpaste recognized for its dental hygiene products.

50-Cents-Off Coupon

A promotional tool that offers a discount of fifty cents on a particular product or service, used to stimulate sales and attract customers.

Direct Marketing Tools

Tools and channels such as email, SMS, telemarketing, and mail order catalogs that marketers use to directly communicate and engage with potential customers.