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:

Aesthetic Needs

Human desires related to the appreciation of beauty, art, and pleasing experiences in one's environment.

Cognitive Needs

Psychological requirements for understanding, curiosity, knowledge, and meaning.

Esteem Needs

According to Maslow's hierarchy, the human need for respect, self-esteem, and recognition from others.

Self-Actualization

A concept in psychology, particularly within the humanistic approach, referring to the realization of one's full potential, expressing one's creativity, quest for spiritual enlightenment, pursuit of knowledge, and desire to give to society.