In a Regression Model, If Variance of the Dependent Variable

question 21

Multiple Choice

In a regression model, if variance of the dependent variable, y, conditional on an explanatory variable, x, or Var(y|x) , is not constant, _____.

• A)the t statistics are invalid and confidence intervals are valid for small sample sizes
• B)the t statistics are valid and confidence intervals are invalid for small sample sizes
• C)the t statistics and the confidence intervals are valid no matter how large the sample size is
• D)the t statistics and the confidence intervals are both invalid no matter how large the sample size is

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Definitions:

Auxiliary Assumptions

Additional premises or conditions presumed to be true to support an argument or theory.

Affirming The Consequent

An invalid mixed hypothetical syllogism in which the categorical premise affirms the consequent of the hypothetical premise and the conclusion affirms the antecedent.

Explanandum

The phenomenon or event that is to be explained in a scientific or philosophical inquiry.

Hypothesis

A proposed explanation for a phenomenon made as a starting point for further investigation, testing, or experimentation.