You Can Test for a Structural Break in Time-Series Data

question 9

Multiple Choice

You can test for a structural break in time-series data by

• A)including a dummy variable for data after the suspected break and interaction terms between that variable and the remaining independent variables and testing for the joint significance of those terms.
• B)including dummy variables for three of the four quarters and testing for the joint significance of those variables.
• C)estimating the regression both with and without the suspect independent variable and comparing the R-squared for the two regressions.
• D)including a time-trend and testing for the individual significance of that term.

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