When Calculating the TSLS Standard Errors

question 9

Multiple Choice

When calculating the TSLS standard errors

• A)you do not have to worry about heteroskedasticity, since it was eliminated in the first stage
• B)you can use the standard errors reported by OLS estimation of the second stage regression.
• C)the critical values from the standard normal table should be adjusted for the proper degrees of freedom.
• D)you should use heteroskedasticity-robust standard errors.

---

Definitions:

Tension

The state of being stretched tight, which can refer to physical objects or a psychological state of stress or anxiety.

Nonmotivating

Activities or stimuli that do not provoke interest, excitement, or drive in an individual.

Motives

The reasons or drives behind an individual's actions or behavior.

Deficiencies

Refers to the lack or shortage of something essential, including nutrients, resources, or qualities necessary for normal functioning and health.