Which of the Following Statements Is True

question 22

Multiple Choice

Which of the following statements is true?

• A)When explanatory variables are not strictly exogenous, the t test for serial correlation is valid.
• B)When explanatory variables are not strictly exogenous, the Durbin Watson test for serial correlation is valid.
• C)Breusch-Godfrey test can be used to check for second order serial correlation.
• D)White test can be used to check for second order serial correlation.

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Definitions:

Foreign Corporation

A corporation created by or organized under the laws of a state other than the one in which it is operating.

Certificate of Authority

A document issued by a governmental authority granting permission to a business entity to operate in a specific jurisdiction.

Incorporate

To form a legal corporation, allowing a business to operate as a separate legal entity from its owners, with its own rights and liabilities.

Incorporation Process

The incorporation process involves the legal procedure of creating a corporation, which is a type of recognized legal entity separate from its owners, providing limited liability and other benefits.