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:

Jawless Fishes

A group of fish that lack a true jaw, represented by modern lampreys and hagfishes, belonging to the superclass Agnatha.

Myxini

A class of jawless marine animals known as hagfishes, characterized by their slimy skin and primitive features.

Petromyzontida

An order of jawless fish, also known as lampreys, characterized by their eel-like appearance and parasitic or non-parasitic lifestyle.

Oviparous

Bearing young in the egg stage of development; egg laying.