HAC Standard Errors Should Be Used Because

question 45

Multiple Choice

HAC standard errors should be used because

• A)they are convenient simplifications of the heteroskedasticity-robust standard errors.
• B)conventional standard errors may result in misleading inference.
• C)they are easier to calculate than the heteroskedasticity-robust standard errors and yet still allow you to perform inference correctly.
• D)when there is a structural break, then conventional standard errors result in misleading inference.

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Definitions:

Classical Conditioning

An acquisition technique involving the frequent pairing of two stimuli; a response that initially derives from the second stimulus, in the end, derives from the first stimulus alone.

Drug Craving

An intense desire or urge for a specific drug, experienced after exposure to the drug or cues associated with the drug.

Operant Conditioning

A developmental technique that modifies behavior intensity by employing strategies of reinforcement or punishment.

B.F. Skinner

An influential psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.